AU Small Finance Bank FD Interest Rate
Updated 06 Dec 2023
AU Small Finance Bank Fixed Deposit Interest RatesNote: All interest rates are updated as of 30 Nov 2023
|Tenure||For General Citizen (p.a)||For Senior Citizen (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 %|
|60 Months to 120 Months||7 %||7.5 %|
AU Small Finance Bank Fixed Deposit
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%.
Pros of investing in AU Small Finance Bank Fixed Deposit
- Period: The FD with AU Small Finance Bank ranges from 7 days to a maximum of 10 years.
- Convenient: Having a savings account in AU Small Finance Bank allows one to open fixed deposits easily, and they can be liquidated whenever required.
- DICGC insurance: The amount invested with the bank is covered by DICGC for the total sum of ₹5 lakhs.
- Minimum amount: Fixed deposits with AU Small Finance Bank can be opened with an investment as low as ₹1,000.
- Preference to senior citizens: Senior citizens can earn an additional interest of up to 0.75% p.a. over and above the interest rates applicable on regular AU Fixed Deposits.
- Tax benefits: AU Small Finance Bank’s Tax Saving FD offers deductions under Section 80C of the Income Tax Act of 1961.
- Auto-renewal option: The bank offers an auto-renewal option for their FDs. This means that at the FD's maturity, it gets renewed automatically. This is helpful for investors as they do not have to take the pressure of renewing their FDs.
- Nomination facility: Depositors can nominate beneficiaries for investments in AU Small Finance Bank FDs.
Cons of investing in AU Small Finance Bank Fixed Deposit
- Not dynamic: Interest rates on FD are not dynamic. So, it fails to overcome the risk of inflation.
- Fixed-rate: Fixed deposits offer a fixed rate on the investment. Hence, you cannot benefit from higher returns in cases of increased market interest rates.
Eligibility Criteria to Open a Fixed Deposit with AU Small Finance Bank
To invest in AU Small Finance Bank Fixed Deposits, the following are eligible:
- Resident Indians
- Persons of Indian origin
- Overseas citizens & non-resident Indians
- Any individual who is 18 years and above
- HUF members
- Partnership firms
- Sole proprietorship firms
- Limited companies
- Trust accounts
Documents Required to Open an AU Small Finance Bank Fixed Deposit
The following documents are required to invest in AU Small Finance Bank Fixed deposits:
- FD application form
- Government-approved identity proof (PAN card, Aadhar card, driving licence, Voter ID, Passport)
- Government-approved address proof (Aadhar card, Voter ID, electricity bill, telephone bill)
- Aadhar card
- PAN card
- Passport size photo
How To Open A FD Account with AU Small Finance Bank?
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
AU Small Finance Bank Fixed Deposit Premature Withdrawal
- AU Small Finance Bank allows premature withdrawal of all its FDs, except for tax-saving FDs.
- In the case of premature withdrawal, the bank imposes a penalty of 1% on the interest earned, regardless of the tenure of the investment. If you withdraw your FD before the maturity date, you will receive a reduced interest amount as a penalty.
Tax implications on AU Small Finance Bank FD
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:
- Taxpayers can invest in FD either through public or private sector banks.
- Individuals and HUFs can avail tax deductions by investing in tax savings FDs.
- Bank's five-year tax saving FD offers exemptions under Section 80C.
- Investors cannot get loans against these FDs.
- In the case of joint holders, only the first holder can get tax benefits.
How to claim tax benefits?
When filing the Income Tax Returns (ITR), the taxpayer can provide supporting documents to avail tax benefits on FDs.
Tax Deducted at Source (TDS)
- TDS will be deducted from the interest accrued on the FDs if the interest is more than ₹40,000 (₹50,000 for senior citizens) in a given financial year.
- For Resident customers, if you have submitted your PAN card details, the deduction will be 10% per year on the interest. The bank will deduct 20% of TDS annually without a PAN card.
Can investors get a loan against AU Small Finance Bank FD?
Yes, the investor can get a loan in the form of an overdraft facility on an FD.
Is the ₹5 lakhs DICGC insurance cover applicable on AU Small Finance Bank FD?
Yes. ₹5 lakhs Deposit Insurance and Credit Guarantee Corporation (DICGC) insurance cover applies to AU Small Finance Bank FD.
Can investors increase the amount of FD once made?
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.
Can investors check the amount of FD in AU Small Finance Bank?
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.
Calculate AU Small Finance Bank FD Returns
Top Banks Interest Rates
Top Banks FD Schemes
Understanding Fixed Deposit
Disclaimer: Wint Wealth makes no guarantee or warranty on the accuracy of the data provided on this site, the information displayed is subject to change and are provided on an as-is basis. Nothing contained herein is intended to or shall be deemed to be investment advice, implied or otherwise. You are advised to make your own enquiries, consult a professional advisor and verify the information prior to taking any investment decisions. We accept no liability for any loss arising from the use of information contained on this website.