Everything About the Latest AU Small Finance Bank FD Rates

When it comes to making a secure investment, a Fixed Deposit or FD is one of the most popular options. It is a type of term deposit in which one can deposit or invest money for a higher interest rate as compared to a savings account. AU Small Finance Bank FD rates allow customers to earn a higher rate of interest than other traditional investments. In this article, we will discuss everything you need to know about the latest AU Small Finance Bank FD rates, including the different types of FDs available, the benefits of investing in FDs and other important details about its FD services.

Types of FD Offered by AU Small Finance Bank

AU Small Finance Bank offers two kinds of Fixed Deposits, i.e. Regular Fixed Deposit and Tax Saving Fixed Deposits, to its customers. Detailed information on each type of FD is mentioned below. 

Regular FD Scheme

If you are someone who is opposed to taking risks, then AU Small Finance Bank’s Regular Fixed Deposit schemes are an excellent investment choice for you. This kind of FD features high-interest rates and flexibility. On the basis of the AU Small Finance Bank’s current FD rates, Indian residents, trusts, single proprietorship businesses, and other entities can receive attractive returns. 

In other words, the interest is reinvested into the scheme. However, the FD investors can choose for interest payout on monthly or quarterly intervals instead of compounding.

To learn more about the Regular FD Scheme, please have a look at the pointers below: 

• Tenure: 7 days – 10 years

• Minimum Deposit Amount: Rs. 1,000

• Maximum Deposit Amount: No Limit

• TDS: Applicable if the total interest exceeds Rs. 40,000 annually. And Rs. 50,000 for senior citizen depositors.

• PAN Card: Mandatory if the deposit amount at a branch exceeds Rs. 50,000.

• Premature Withdrawals: Allowed; however, the bank will levy a penalty of 1%.

Tax Saving FD Scheme

Customers who invest in the Tax Saving Fixed Deposit Scheme of the AU Small Finance Bank can benefit from tax breaks in addition to increased savings. When opening a joint account, only the principal account holder is eligible to receive the tax benefit on the interest received. Under Section 80C of the Income Tax Act, 1961, investors of Tax Savings FD can save taxes up to Rs 1.5 lakhs. Tax Saving FDs have a lock-in period of 5 years and come with restrictions on premature withdrawals. 

Look at the details below to learn more about the Tax Saving FD Scheme of AU Small Finance Bank.

• Tenure: 7 days – 10 years

• Minimum Deposit Amount: Rs. 1,000

• Maximum Deposit Amount: Rs. 1,50,000 per annum

• TDS: Applicable if the total interest exceeds Rs. 40,000 a year. And Rs. 50,000 for senior citizen depositors.

• Lock-in Period: 5 years

• Premature Withdrawal: Not allowed

AU Small Finance Bank FD Rates

The AU Bank FD Rates for the general public, senior citizens, and NRE/NRO for an amount less than Rs. 2 Crore are as follows:-

AU Small Finance Bank FD Interest Rates for General Public (Below Rs.2 Crore)

Note: The above-mentioned AU Small Finance Bank FD rates are effective from 03rd March 2023.

AU Small Finance Bank for Senior Citizens (Below Rs.2 Crore)

Note: The AU Bank FD rates stated above are effective from 03rd March 2023.

AU Small Finance Bank FD Interest Rates for NRE / NRO (Below Rs.2 Crore)

Note: The AU Small Finance Bank FD rates above are applicable from 03rd March 2023.

Features and Benefits of AU Small Finance Bank FD

The features and benefits of AU Small Finance Bank Fixed Deposit are as follows:-

Features

• Tenure: The tenure of AU Small Finance Bank Fixed Deposit ranges from 7 days to 10 years. Remember that you cannot change the tenure of the AU Small Finance FD once it has started.

• Additional Payments: Investors cannot deposit an additional amount in an AU Small Finance Bank FD once it has commenced. However, they can open a new FD with the new amount.

• Premature Withdrawal: All AU Small Finance Bank FDs can be withdrawn prematurely except for tax-saving FDs. Also, the bank charges a penalty of 1% on the interest for all premature withdrawals, irrespective of the investment’s tenure.

• Loan Against FD: AU Small Finance Bank provides loans against their Fixed Deposits. Also, the interest rate for the loan will be in the range of 4.5% to 7.5%.

• Minimum and Maximum Investment: The minimum investment in AU Small Finance Bank FD is Rs. 1,000. However, there is no maximum limit except for the tax-saving FD, which is Rs. 1.5 lakhs.

• Auto-renewal: AU Small Finance Bank’s FD investors can opt for auto-renewal of their Fixed Deposits.

• Safety: The Deposit Insurance Scheme of RBI covers all the FDs of AU Small Finance Bank. The scheme covers all AU Small Finance Bank deposits up to Rs. 5,00,000.

• Nomination Facility: AU Small Finance Bank FD investors can nominate beneficiaries for their Fixed Deposits.

Benefits

• AU Small Finance Bank FD carries minimal or no risk and promises guaranteed returns to the investor.
• The FD in AU Small Finance Bank offers competitive rates across all horizons of investment.

• The interest rates offered by AU Small Finance Bank range between 3.50% to 6.50% p.a.

• Senior citizens who invest in AU Small Finance Bank’s FD are eligible for an additional 0.50% of interest rate on all tenures.

Premature Withdrawal of Fixed Deposits

When a fixed deposit is withdrawn before the due date, it is known as premature withdrawal of FD. In general, banks do not allow premature withdrawal of Fixed Deposits, and a penalty might be charged for the amount withdrawn.

The amount of penalty depends upon the time the deposit was held and the amount withdrawn. The rate of interest on the premature withdrawal of fixed deposits is usually lower than the rate of interest on the fixed deposit. FYI, the current penalty rate for premature withdrawal of FD in AU Small Finance Bank is 1%.

How to Open a Fixed Deposit Account in AU Small Finance Bank?

Are you willing to open an FD account in AU Small Finance Bank but need clarification regarding how to get it done? If yes, then this section is for you! Here, we have listed below the three common ways to help you open a Fixed Deposit account in AU Small Finance Bank without hassle.

 1. Open via Internet Banking

Follow the steps below to open an AU Small Finance Bank FD account through internet banking:

Step 1: Log in to the NetBanking account of AU Small Finance Bank.

Step 2: Select the ‘Fixed Deposit’ option on the home page and choose the type of fixed deposit scheme as per your preference.

Step 3: Enter all your personal details, deposit duration, nominee details, interest payout option, payment and maturity instructions.

Step 4: Validate the details and tap the ‘Submit’ option to complete the AU Small Finance Bank FD account opening process.

In just four simple steps, you will be able to open an FD account in AU Small Finance Bank via Internet Banking. 

 2. Open via Offline Mode

Another way to open an AU Small Finance Bank FD account is by visiting the store in person. The steps are as follows:

Step 1: Visit your nearest AU Small Finance Bank branch.

Step 2: Fill out the AU Small Finance Bank FD application form with all the relevant information.

Step 3: Submit the form along with the necessary documents and the deposit amount.

Step 4: After successfully processing the application, AU Small Finance Bank will provide an FD receipt.

That’s all! Your FD account in AU Small Finance Bank will soon be operable. 

 3. Open via Mobile App

Follow the steps below to open an FD account in AU Small Finance Bank via Mobile App:

Step 1: Download the AU Small Finance Bank mobile app.

Step 2: Choose the ‘Fixed Deposit’ option on the home page, and select the type of fixed deposit scheme.

Step 3: Fill in all personal details, deposit duration, nominee details, interest payout option, payment and maturity instructions.

Step 4: Check the details and tap on the ‘Submit’ button to complete the FD account opening process in the AU Small Finance Bank.

These four easy steps will help you open your FD account in AU Small Finance Bank without any hassle. 

Eligibility to Open AU Small Finance Bank FD

The eligibility criteria for opening Regular FD and Tax Saving FD in AU Small Finance Bank differ. Have a look at each of the sections below to gain a better understanding of the same.

Eligibility Criteria to Open Regular Fixed Deposits

The regular fixed deposit accounts can be opened by:

• Resident Indians
• Partnership Firms
• Trust Accounts
• Hindu Undivided Families
• Limited Companies
• Sole Proprietorship Firms

Eligibility Criteria to Open Tax-Saving Fixed Deposits

The eligibility criteria to open tax-saving fixed deposit accounts are as follows:

• You must be a resident individual 
• You must belong to Hindu Undivided Family

Documents Required to Open AU Small Finance Bank FD

In order to open a fixed deposit account with AU Small Finance Bank, individuals must provide the following documents as per the category in which they fall:

1. Existing Customers

If you already have an account with AU Small Finance Bank, you do not need to submit any documents, as the bank already has your details and will use the same to open an FD account. You can easily apply anytime via AU Small Finance Bank’s net banking application to open a Fixed Deposit account. 

2. New Customers

As a new customer of AU Small Finance Bank, you will have to submit:

• KYC verification documents like PAN, Aadhaar, Voter ID Card, Passport and Driving License
• Latest passport-size photographs

3. Public/Private Limited Companies

All commercial entities, like public and private companies, have to undergo a slightly stringent documentation process that requires them to submit the following documents:

• Incorporation or Registration Certificate
• KYC verification for authorised signatories
• Company PAN
• Latest passport-size photographs
• Board resolution to open Fixed Deposit Account
• Bank Statements/Latest Utility Bills

4. Hindu Undivided Family (HUFs)

A HUF has to submit the following documents for opening a fixed deposit account in AU Small Finance Bank:

• KYC Documents
• PAN Card
• HUF Deed
• Latest passport-size photographs

5. Organisations and Trusts

The documents required by organisations and trusts while opening an FD account in AU Small Finance Bank include the following:

• PAN Card
• Latest passport-size photographs 
• Registration Certificate
• KYC documents
• Board resolution to open FD Account

6. Partnership Firm

Every partnership firm has to submit the below-mentioned documents to open a Fixed Deposit account in AU Small Finance Bank:

• KYC verification for authorised signatories 
• Partnership Deed
• Latest passport-size photographs
• PAN Card
• Registration Certificate

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