AU Small Finance Bank offers a variety of Fixed Deposit (FD) schemes with competitive rates to suit your financial goals. In this article, we will take you through the features, benefits, types, and application process of AU Small Finance Bank FD.
AU Small Finance Bank
AU Small Finance Bank Limited, founded in 1996 as AU Financiers (India) Ltd, has evolved into an Indian scheduled commercial bank. The bank’s transformation into a small finance bank in 2017 marked a significant step in its journey. With a strong focus on retail customers, especially those from low and middle-income segments, AU Small Finance Bank provides an array of lending, deposit, and payment products and services.
Features and Benefits of AU Small Finance Bank FD
AU Small Finance Bank FDs come with a range of features and benefits:
- Competitive Rates: The bank offers competitive interest rates across various investment horizons.
- Senior Citizen Benefit: Senior citizens enjoy an additional 0.50% interest on all tenures.
- Interest Rate Range: Interest rates vary from 3.50% p.a. to 6.50% p.a.
- Maximum Interest Rate: The highest rate, 6.50% per annum, is available for a 24-month investment period and certain other tenures.
Types of AU Small Finance Bank FD Schemes
Regular FD
The regular FD scheme caters to risk-averse investors and offers attractive returns based on current rates. Key details include:
- Tenure: 7 days to 120 months.
- Minimum Deposit: Rs. 1,000.
- Interest: Compounded annually, with options for monthly or quarterly payouts.
- Senior Citizen Benefit: Additional 0.50% interest.
- Premature Withdrawal: Possible with a 1% penalty.
- Online Booking: Via net banking.
- Renewal Option: Automatic renewal available.
- Link with Savings Account: Can be linked, with a sweep-in feature.
5-Year Tax Saving Fixed Deposit
This scheme offers tax breaks along with savings:
- Tenure: 5 years.
- Minimum Deposit: Rs. 1,000.
- Senior Citizen Benefit: Extra 0.50% interest.
- Premature Withdrawal: Not available.
- Nomination Facility: Provided.
- Tax Benefit: Deduction up to Rs. 1.5 lakh under Section 80C.
- Short-Term, Medium-Term, and Long-Term Deposits
- Short-Term: 7 days to less than a year.
- Medium-Term: 1 year to 5 years.
- Long-Term: 5 years to 10 years.
- Interest rates vary based on the deposit period and whether you’re a senior citizen.
How to Invest in AU Small Finance Bank FD
Investing in AU Small Finance Bank FDs is easy:
Internet Banking
- Sign in to AU Small Finance Bank NetBanking.
- Choose ‘Fixed Deposit’ and select the type of FD.
- Provide personal details, nominee info, deposit duration, and more.
- Verify and submit to complete the process.
Mobile App
- Open the AU Small Finance Bank App.
- Select ‘Fixed Deposit’ and choose the FD type.
- Fill in personal and nominee details, deposit duration, and more.
- Verify and submit for account opening.
Offline Mode
- Visit a nearby AU Small Finance Bank branch.
- Fill out the FD application form.
- Provide necessary documents and deposit amount.
- Receive an FD receipt upon successful processing.
Eligibility and Required Documents
AU Small Finance Bank FDs are open to:
- Resident Indians
- Sole proprietorship firms
- Limited companies
- Trusts
- Partnership firms
- Hindu Undivided Families
- Documents required include residence proof, date of birth proof, identity proof, and the FD application form.
Tax Implications
Tax-saving FDs offer deductions up to Rs. 1.5 lakh under Section 80C. Interest income is taxable, subject to TDS. Senior citizens have a different threshold.
Loan Against AU Small Finance Bank FD
The bank offers loans against FDs, with interest rates ranging from 4.5% to 7.5%.
Premature Closure of AU Small Finance Bank FD
All FDs can be withdrawn prematurely, with a 1% penalty on interest. Tax-saving FDs are exempt.
AU Small Finance Bank FD Rates 2023
| Tenure | General Citizens | Senior Citizens |
|---|---|---|
| 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 | 5.00% | 5.50% |
| 6 months 1 day to 12 months | 6.75% | 7.25% |
| 12 months 1 day to 15 months | 7.50% | 8.00% |
| 15 months 1 day to 18 months | 7.50% | 8.00% |
| 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 | 7.50% | 8.00% |
| 45 months 1 day to 60 months | 7.00% | 7.50% |
AU Small Finance Bank FD offer a secure and profitable way to grow your savings. Whether you are a senior citizen or a young investor, there’s a suitable scheme for you. Explore the various options, consider your financial goals, and make an informed decision.
FAQ
No, currently only resident Indians are eligible.
Yes, joint accounts are allowed.
Interest rates are fixed for the chosen tenure.
No, loans against tax-saving FDs are not available.
All premature withdrawals attract a 1% penalty on interest.
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