Au Small Finance Bank Fixed Deposit Interest Rates (as on 2023)
AU Small Finance Bank Fixed Deposit Interest Rates (below Rs.2 Crores) w.e.f. 05.06.2023
|Tenors||Interest Rate p.a.(%)|
|Interest Rate 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||5.00||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|
|60 Months 1 Day to 120 Months||7.00||7.50|
AU Small Finance Bank Recurring Deposit Interest Rates (below Rs.2 Crores) w.e.f. 05.06.2023
|Tenors||Interest Rate p.a.(%)|
|Interest Rate p.a.(%)|
|37 Months to 45 Months||7.50||8.00|
|46 Months to 60 Months||7.50||8.00|
|61 Months to 120 months||7.50||8.00|
AU Small Finance Bank 5-year Tax Saving FD Interest Rates (maximum Rs 1.50 lakhs p.a.) w.e.f. 05.06.2023
|Tenors||Interest Rate p.a.(%)|
|Interest Rate p.a.(%)|
|Above 5 years||7.00||7.50|
Snapshot: AU Small Finance Bank
|Eligibility||Any Individual or Group of Individuals, Firm, Corporate or Club etc.|
|Minimum FD||Rs. 1,000|
|Maximum FD||No maximum limit|
|FD Tenure||7 days to 120 months|
|Periodicity of Interest Payment||Monthly (at discounted rates) or Quarterly or Cumulative|
|Premature withdrawal penalty||1%|
|Interest to Senior Citizens||0.50% more than general FD for FD amount below Rs.1 Crore|
AU Small Finance Bank Fixed Deposit
AU Small Finance Bank has a range of Fixed Deposits (FD) products at competitive interest rates with various tenures and lots of other benefits. AU Small Finance Bank offers Fixed Deposit schemes for a short term period and long term period.
It is very easy to open an AU Small Finance Bank FD either online through its website or by visiting its nearby branch.
Important Points regarding AU Small Finance Bank Fixed Deposit
- In order to avail Senior Citizen Interest Rates, submission of age proof is mandatory.
- Submission of Income Tax PAN is mandatory, failing which TDS will be deducted at a higher rate.
- PAN is mandatory to book Fixed Deposits, if the total Fixed Deposit holding per customer, per branch exceeds Rs 50,000.
- No interest will be paid if the deposit is withdrawn within 7 days of the date of booking the deposit, in case of Domestic Fixed Deposits.
- Monthly Payout Fixed Deposits are available only for tenures above 3 months and is available for both individuals (Domestic, NRO, Senior Citizens) and non-individuals.
Features & Benefits: AU Small Finance Bank Fixed Deposit
- Competitive interest rates are offered with flexible FD tenures to suit your investment plan.
- FD account can be opened online or by visiting your nearest Bandhan Bank branch.
- Minimum Amount of FD: Rs 1,000
- Maximum Amount of FD: No limit
- FD Tenures: 7 days to 10 years
- Different interest payout options such as monthly, quarterly, etc. However, Monthly Payout FDs are available only for tenures above 3 months
- Loan/ Overdraft against FD facility is available upto 90% of the FD amount
- Easy and fast liquidity options are available
- Nomination facility is available
- Part withdrawal facility, premature withdrawal and auto-renewal facilities are available
- Senior citizens can enjoy higher interest rate as compared to regular citizens
- NRE and NRO deposit facility is available
Eligibility for AU Small Finance Bank Fixed Deposit
Any of the following persons can invest in fixed deposits (FD):
- Proprietary Firm
- Partnership Firm
- Limited Liability Partnership (LLP)
- Association of Persons (AOP)
- Body of Individuals (BOI)
- Local Authority
- Non-Resident Indian (NRI)
- Registered Society
Documents Required for AU Small Finance Bank Fixed Deposit
Following Documents are required for opening a Fixed Deposit Account
|Individual, HUF, Proprietor|
Types of AU Small Finance Bank Fixed Deposits
- AU Small Finance Bank Regular Fixed Deposits: This is a regular FD scheme which helps you invest your idle savings to earn higher returns. Minimum deposit in this scheme is of Rs 1,000. Its tenure ranges from 7 days to 10 years. It offers great rates, flexibility and security for your fixed deposits, with even higher interest for our Senior citizens, with quarterly and monthly payout options. You can also earn compound interest by reinvesting your principal amount along with the interest earned during the period.
- AU Small Finance Bank 5-year Tax Saving Fixed Deposit: The regular Tax Saving products are available to all resident individuals, HUFs and Minors. It offers an exemption under section 80C of Income Tax Act which can be claimed by the depositor in case of single depositor or the first holder in case of joint depositors, within eligible investments. FD amount is minimum of Rs.1,000 and maximum limited to Rs.1,50,000 in a financial year. Deposit will be accepted for a minimum period of 5 years and maximum period of 10 years. It cannot be encashed before the expiry of 5 years from the date of its receipt.
- AU Small Finance Bank Recurring Deposits: It scheme allows you to start saving a small amount regularly to help your money grow slowly but steadily. Minimum deposit in this scheme is of Rs 100. Its tenure ranges from 3 months to 10 years. You can build your wealth securely through regular investments at attractive Interest rates. It gives you opportunity to achieve your short or long term finance goals comfortably. Interest is only paid on maturity. Minimum period for NRE Recurring Deposit is 1 year. If frequent defaults (non-payments) are observed in monthly installments, and three installments fall in debts, the Bank reserves the right to close the RD account. The interest rate applicable on such closed accounts will be as per the premature withdrawal policy of the Bank.
- AU Small Finance Bank Sweep In Facility: This scheme offers automatic transfer of amount to term deposit for a specific period. In case of insufficient balance in the current/ savings account, required amount will be transferred by breaking deposits. The deposit is broken in units of Rs. 100/-, thereby giving you the convenience of getting payments processed with ease ensuring complete peace of mind and minimising your Interest Loss. Sweep-in of funds from your Fixed Deposit to your Savings or Current Account will get triggered on Lowest Rate, First Out Basis, giving you maximum benefit in case of multiple linked deposits. Regular term deposit interest rate is offered in it.
How Sweep-in facility in AU Small Finance Bank works?
The Sweep-In facility enables customers to link existing Term Deposit to Savings or Current Account held with the bank. In case of an emergency the shortfall in the account is swept in from the linked Term Deposit in the units of Rs. 1, thereby giving customer the convenience of getting payments processed with ease. Only the deposit principal amount will be considered for sweep-in facility.
Example to illustrate how does the Sweep-In facility work?
- Mr. Ajay has availed Sweep-In facility on his existing Fixed Deposit of Rs. 60,000 held with the bank
- Suppose on a particular day, the balance in his Savings Account is Rs. 30,000
- He issues a cheque for Rs. 40,000
- The cheque has come for clearing
- Now there is a shortfall of Rs. 10,000 (Account Balance - Cheque Amount)
- AU Small Finance Bank will debit Rs. 10,000 from the linked Fixed Deposit and will clear the cheque
Premature Closure of AU Small Finance Bank Fixed Deposit
The interest rate applicable on premature closure of Fixed deposits (all amounts) will be lower of following two:
- The base rate for the original/contracted tenure for which the fixed deposit has been booked
- The base rate applicable for the tenure for which the fixed deposit has been in force with the Bank
The base rate is the rate applicable to Retail Fixed Deposits as on the date of booking the deposit
The penalty on premature closure / withdrawal of Retail Fixed Deposits including sweep-in and partial closures has been fixed by the Bank at the rate of 1%
Benefits of Senior Citizens AU Small Finance Bank Fixed Deposit
Senior Citizens are offered more interest rate by AU Small Finance Bank for FD amount below Rs.1 Crore as detailed below:
- 0.50% more than general FD for FD amount below Rs.1 Crore
Tax Information: AU Small Finance Bank Fixed Deposit
TDS (Tax Deducted at Source) will be applicable when the total interest payable or reinvested in Recurring Deposits and/or Fixed Deposits per customer, across all branches, exceeds Rs.10000 in a financial year. A TDS Certificate will be mailed to you after end of every quarter during the Financial Year, providing the details of TDS deducted during the quarter.
|STATUS||TAX RATE||EDUCATION CESS||TOTAL|
|Resident Individuals & HUF||10%||----||10%|
|Co-operative Societies & Local Authority||10%||----||10%|
A fresh Form 15G/H needs to be submitted at the beginning of each Financial Year. Form 15G/H will need to be submitted for all subsequent deposit(s) booked, on every 31st of March. TDS is recovered on the total of interest compounded and interest accrued on the Fixed Deposit(s).
NRI Fixed Deposit accounts offered by AU Small Finance Bank
AU Small Finance Bank offers many fixed deposit schemes specially designed for its NRI customers. In these schemes, NRI customers can deposit money either in Indian currency or in foreign currency depending on their status and preference. The bank also offers different interest rates for NRI fixed deposits. Following types of NRI fixed deposits are offered by AU Small Finance Bank:
|NRI Account Type||Details|
|NRE Account (Non Resident External Account)||Account is maintained in Indian currency|
|NRO Account (Non Resident Ordinary Account)||This either be funded by conventional payment or through traveller's cheques|
How and when to apply for exemption on TDS?
- If your total taxable income during the financial year is not likely to exceed the maximum amount which is not chargeable to income tax, then you can submit self declaration in Form 15G or 15H (for senior citizens only) to the bank to ensure non deduction of tax at source.
- The declaration has to be given in prescribed format only wherein the valid 10 digit PAN is also required.
- It may be noted that if the interest payable by the bank during the financial year on time deposits is likely to exceed the maximum amount which is not chargeable to income tax, then the Form 15G submitted will be treated as invalid.
- In case of Senior Citizens, if the interest payable by the bank during the financial year on time deposits is likely to exceed the maximum amount which is not chargeable to tax and deduction(s) under chapter VIA, if any, for which declarant is eligible, then the Form 15H submitted will be treated as invalid.
You may refer to following table for more details:
|Category||Name of Form||Exemption limit (Male)||Exemption limit (Female)|
|Individuals(upto age of 60)||Form 15G||Rs.2,50,000||Rs.2,50,000|
|HUFs, Associations, Trusts||Form 15G||Rs.2,50,000||Rs.2,50,000|
|Individual (age 60 years and above but less than 80 years)||Form 15H||Rs.3,00,000||Rs.3,00,000|
|Individual (age 80 years and above)||Form 15H||Rs.5,00,000||Rs.5,00,000|
|Others||Exemption certificate issued by Income Tax Officer||As per Exemption Certificate||As per Exemption Certificate|
AU Small Finance Bank Fixed Deposit FAQ
- What interest payment options are available under Term Deposit with AU Small Finance Bank?
Interest payment on Monthly (discounted), Quarterly and Cumulative is available under AU Small Finance Bank Term Deposit.
- What is the minimum and maximum amount of FD in AU Small Finance Bank?
The minimum amount is Rs.1,000 and there is no cap on maximum FD amount.
- What is the minimum and maximum tenor for which Term Deposit can be kept with AU Small Finance Bank?
The minimum and maximum tenor for general/Senior citizen is 7 days and 120 months respectively.
- Does AU Small Finance Bank offer any special interest rate for Senior Citizen on its Term Deposits?
Yes, an additional interest rate for Senior Citizen is 0.50% for deposits less than Rs. 1 crore.
- When is TDS deducted?
TDS is done at the time of credit of interest to account, if the total interest payable to the customer during the financial year is likely to exceed the limit of Rs.10,000.
- At what rate is TDS deducted?
TDS is deducted at rates as required by section 194A (Resident) and section 195 (NRO) of IT Act 1961 for the following category of account holders:
- Resident Indians (Individuals, Trusts, Associations, HUFs, Firms Indian Companies): 10% plus applicable surcharge and education cess
- Non-Resident Indians: 30% plus applicable surcharge and education cess
- Can I apply for exemption on TDS?
Yes, you can apply for exemption on TDS, in case your total taxable income during the financial year is not likely to exceed the maximum amount which is not chargeable to income tax. For this, you need to submit self declaration in Form 15G or 15H (for senior citizens only) to the Bank to ensure non deduction of tax at source, in the beginning of respective financial year.
Tax Implications and TDS in FD
- An amount invested in fixed deposits in a scheduled bank is eligible for tax deduction under section 80C. Only the interest earned on the deposit is taxable.
- Tax will be deducted at source (TDS), if the interest income on a fixed deposit per annum exceeds Rs.10,000
- A person can exempt from TDS, if he/ she submits Form 15G/ Form 15H in the beginning of each financial year
Factors affecting Fixed Deposit Interest Rates
- Change in Policies Rates by RBI: If there is a change in Cash Reserve Ratio (CRR) and/ or Repo Rate, it affects the fixed deposit interest rate.
- Inflation: As FD interest rate has to be kept higher than inflation by the banks, hence if inflation increases then FD interest rates also go higher. When inflation decreases, banks offer lower interest rates so that people can borrow and spend more.
- Demand and Supply of Credit: With the increase in demand of the credit/ loan, interest rates of fixed deposit also go higher. When the supply is more than the demand of credit, banks offer lower interest rates on fixed deposit.
- Growth Uncertainty: If there is any uncertainty of future economic growth, the banks need to offer higher interest rates on FD as a compensation for higher default risks.
- State of Economy: If a country's economic state is very good then the banks of that country offer higher interest rate on fixed deposits in order to attract more investments to extend more credits/ loans.
- Recession: Whenever there is a situation of recession in an economy, it always results into a decrease in the fixed deposit interest rate, as in case of situation of recession, the RBI needs to increase the liquidity in the market by releasing the funds i.e. by lowering CRR and hence, banks reduce the FD interest rates.
- Global Liquidity: Higher global liquidity results into higher domestic liquidity. In such cases banks will offer lower interest rates on FD.
AU Small Finance Bank FD News Dec 2023
- May 17, 2023: AU Small Finance Bank has increased its interest rates on fixed deposits of less than Rs. 2 Crores w.e.f. May 15, 2023.
- December 15, 2022: AU Small Finance Bank bank offers up to 8.5% FD interest rate for senior citizens.
- October 12, 2022: AU Small Finance Bank has increased its interest rates on fixed deposits by up to 60 basis points (bps) as of October 10, 2022.
- October 12, 2022: Senior citizens to get 8% on AU Small Finance Bank's fixed deposit for the FD period from 24 months to 45 months w.e.f. October 10, 2022.
- June 24, 2022: AU Small Finance Bank AU Small Finance Bank has hiked interest rates on fixed deposits of less than Rs. 2 Crore With effect from today 24th June 2022.
- April 30, 2021: AU Small Finance Bank reported a 38.1% jump in its net profit for Q4 ended March 31, 2021 at Rs 168.97 crore versus Rs 122.32 crore a year ago.
- April 26, 2021: AU Small Finance Bank allots 48,267 equity shares under ESOP
- January 25, 2020: AU Small Finance Bank has posted a net profit of Rs 190.19 crore for the quarter ended December 31, 2019
- January 23, 2020: AU Small Finance Bank allots 37158 equity shares under ESOP