AU Financiers, a retail-focused Non-Banking Finance Company (NBFC), was established in 1996 by Mr Sanjay Agarwal to provide financial solutions to the unbanked masses of India. After acquiring the Small Finance Bank (SFB) licence in 2015, it commenced banking operations in 2017 and obtained Scheduled Bank status later that year. As of December 2022, AU Small Finance Bank has 1015 touch points across 21 states and 3 union territories.
|Tenure||For General Citizens (p.a.)||For Senior Citizens (p.a)|
|7 Days to 1 Month 15 Days||3.75%||4.25%|
|1 Month 16 Days to 3 Months||4.25%||4.75%|
|3 Months 1 Day to 6 Months||5%||5.5%|
|6 Months 1 Day to 12 Months||6.75%||7.25%|
|12 Months 1 Day to 15 Months||7.5%||8%|
|15 Months 1 Day to 18 Months||7.5%||8%|
|18 Months 1 Day to 24 Months||7.25%||7.75%|
|24 Months 1 Day to 36 Months||7.75%||8.25%|
|36 Months 1 Day to 45 Months||7.5%||8%|
|45 Months 1 Day to less than 60 Months||7%||7.5%|
|Note: All interest rates are updated as of 1st Aug 2023|
AU Small Finance Bank offers various fixed deposit options for different tenures with different interest rates. The interest rates for AU Small Finance Bank FDs are higher than those for their savings account, making them a popular investment option. Now let's discuss the types of FD offered by AU Small Finance Bank in detail:
Regular Fixed Deposit
AU Small Finance Bank's fixed deposit scheme offers reinvestment of interest, but depositors can also receive interest payouts monthly or quarterly. The scheme has a tenure ranging from 7 days to 10 years, with a minimum deposit amount of ₹1,000 and no maximum limit. Premature withdrawals are allowed, but the bank will levy a 1% penalty. You can also opt for an overdraft facility. TDS is applicable if the total interest exceeds ₹40,000 in a year and ₹50,000 for senior citizen depositors.
5-Year Tax Saving Fixed Deposit
AU Small Finance Bank's 5-Year Tax Saving FD allows depositors to benefit from tax deductions. In this scheme, you can start investing with a minimum deposit amount of ₹1,000 and a maximum deposit amount of ₹1.5 lakhs per annum. As this is a tax-saver scheme, premature withdrawal is not allowed. Investors can apply by net banking, video KYC, through the app, branch visits, or customer care.
Sweep-in facility for FD
AU Small Finance Bank's sweep-in facility allows customers to link their savings or current account with a fixed deposit without hassle. The facility essentially functions as a fixed deposit but can also be used in times of need without breaking the full fixed deposit and losing interest; you can use the funds of your need only and don't need to break the entire fixed deposit. Investors don’t have to pay extra costs like overdraft fees if they don’t have enough money in their savings or current accounts. Investors can easily link multiple fixed deposit accounts to their savings or current account and earn a higher interest rate.
Covid Shield Deposit
The covid-19 pandemic has caused economic uncertainty, making it important to have a secure investment and savings plan. AU Small Finance, Bank Covid Shield Deposit, can help to prepare for emergencies by offering attractive interest rates, loyalty rewards, and life insurance coverage for up to ₹5 lakhs.
With this plan, investors can earn high rates on their deposits and enjoy loyalty vouchers on renewal. Bank also offers account conversion for existing FDs, and the deposit is also insured by the Deposit Insurance and Credit Guarantee Corporation (DICGC).
In addition to these benefits, investors can enjoy preferential rates on loans and pre-approved loans after one year of completing the plan.
Investing in Covid Shield Deposit allows investors to create an emergency fund to deal with critical expenses and manage their finances during emergencies like Covid-19. Senior citizens can also benefit from higher rates of up to 0.75%.
To invest in AU Small Finance Bank Fixed Deposits, the following are eligible:
The following documents are required to invest in AU Small Finance Bank Fixed deposits:
Fixed deposit accounts can be opened in both online and offline methods:
Online Method (Via APP and Net Banking)
For non-AU Small Finance Bank customers with no current or saving account:
Step 1: Select the FD option on the AU 0101 App.
Step 2: Enter PAN Aadhar details and proceed for E-KYC
Step 3: Confirm income and personal details and submit the FATCA declaration
Step 4: Choose your Fixed Deposit Type; enter the Amount, Tenure, Bank Account Details & Branch.
Step 5: Confirm and proceed to fund your account.
Step 6: Select ‘Complete your KYC over Video Call now’ or ‘Schedule a Video Call’ later.
Step 7: Confirm your details with our Video Banking Officer. Then display your PAN card on the camera and sign on a blank piece of paper & display your signature on the camera.
Step 8: Tap on FD and select Open FD.
For AU Small Finance Bank Customer:
Step 1: Log in to AU 0101 App
Step 2: Select Product, then enter the Deposit Amount. Now select Interest Payout Frequency, then Deposit Period and Debit Account.
Step 3: Click on Next.
Step 4: Set Maturity Instructions and also choose to select a Nominee.
Step 5: Proceed to book your FD
Step 1: Visit the bank branch.
Step 2: Take the FD application form.
Step 3: Fill in the required details and submit the necessary documents.
Step 4: Submit the form to the branch
According to the Income Tax Act of India of 1961, taxpayers can seek deductions under Section 80C if they invest in FDs.
In a given financial year, a taxpayer can avail tax deduction to a maximum of ₹1.5 lakhs from their gross taxable income, provided the following conditions are fulfilled:
When filing the Income Tax Returns (ITR), the taxpayer can provide supporting documents to avail tax benefits on FDs.
Tax Deducted at Source (TDS)
Yes, the investor can get a loan in the form of an overdraft facility on an FD.
Yes. ₹5 lakhs Deposit Insurance and Credit Guarantee Corporation (DICGC) insurance cover applies to AU Small Finance Bank FD.
Once an AU Small Finance Bank FD has been initiated, investors cannot deposit any additional amount into that particular FD. However, they can open a fresh FD with the additional amount if they wish to invest more.
You can check your AU Small Finance Bank FD balance online by logging into the internet banking portal. For an offline check, update your passbook by visiting the nearest branch of AU Small Finance Bank.
Disclaimer: The calculator and the results of the same are based on information inputted by you and extracted from third party sources. The information on this page is for illustrative purposes only and does not amount to any investment advice or recommendation. Wint Wealth has no commercial interest or gain in or from the actions resulting from the information displayed on this page. The information displayed on this page does not constitute an invitation to invest in any product nor is it a promise of performance. Interest rates are not updated in real time and you are advised to make your own enquiries, consult a professional advisor and verify the information prior to taking any investment decisions.