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Know the Potential to Enhance Portfolio Stability with AU Bank FD

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With various investment options available, you can mitigate your risk by diversifying your portfolio. While market-linked investment instruments can offer higher returns, they have inherent volatility. 


On the other hand, fixed deposits are generally considered risk-averse investment options. Like most financial institutions, AU Small Finance Bank also allows you to book fixed deposits, offering competitive interest rates. 

However, before making an investment decision, find out the current AU Small Finance Bank FD rates and its other benefits.


All About AU Small Finance Bank Fixed Deposits

You can deposit money in an AU Small Finance Bank FD for a fixed tenor of your choice to earn returns at attractive interest rates. It’s a stable and secure addition to your investment portfolio, providing you assured returns. 

These deposits are most preferred for your medium-to-long-term needs. Moreover, senior citizens can also earn marginally higher AU Small Finance Bank FD rates of up to 0.50% p.a. 

By investing in this fixed deposit scheme, you can also avail of a loan facility through FD overdraft.


Types of Fixed Deposits from AU Small Finance Bank

The bank provides three types of fixed deposit facilities. Here are the key highlights of each of the FD schemes:

Regular Fixed Deposit

It is a simple fixed deposit scheme that allows you to enjoy high interests. Investors can also benefit from flexible interest payout options, such as monthly or quarterly interest payouts. You could, alternatively, opt for interest payout at maturity as well with a cumulative FD. 

5-year Tax-saving FD

You can make an investment with a minimum of ₹1,000 in a tax-saving FD account offered by the bank. As its name suggests, these schemes come with a lock-in period of 5 years. However, they allow you to claim deductions of up to ₹1.5 Lakhs in a financial year under Section 80C of the Income Tax Act, 1961.

Sweep-in Facility

A sweep-in facility links your savings account with a fixed deposit account. It facilitates an automatic transfer of the excess amount from your savings account to a fixed deposit so that you can earn higher interest. In doing so, you can enjoy a similar level of liquidity as offered by a savings account.  


AU Small Finance Bank FD Interest Rates

The bank offers a range of interest rates across FD tenors. Before investing in any scheme, it is crucial to decide on the right tenor and interest rate as per your financial objectives.

Check the AU Small Finance Bank interest rates to choose the most-suited tenor:

FD Tenor Non-senior Citizens – Interest Rates (p.a.) Senior Citizens – Interest Rates (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 7.75% 8.25%
15 Months 1 Day to less than 18 Months 7.50% 8.00%
18 Months 8.00% 8.50%
18 Months 1 Day to 24 Months 7.75% 8.25%
24 Months 1 Day to 36 Months 7.50% 8.00%
36 Months 1 Day to 45 Months 7.50% 8.00%
45 Months 1 Day to less than 60 Months 7.25% 7.75%
60 Months to 120 Months 7.25% 7.75%

Disclaimer: The FD interest rates provided in the table above may change subject to changes in the issuer’s policies. Check the latest FD rates before applying for a scheme.


How an AU Small Bank FD Could Help You  

Fixed deposits issued by banks are insured by the Deposit Insurance and Credit Guarantee Corporation (DICGC) for up to ₹5 Lakhs per investor. This is one of the reasons why these FDs are considered low-risk investments. 

While your equity holdings will depend on market fluctuations, the returns on fixed deposits remain independent of such changes. Hence, these can be a great investment option for those looking to hedge against volatility.

Since AU Small Bank FD interest rates are quite competitive, you can also choose to receive regular interest payouts. The payment received could act as a regular stream of income in your retirement days, depending on the principal amount invested. 

In conclusion, the AU Small Finance Bank offers competitive interest rates on fixed deposits. These schemes cater to both regular and senior citizen investors with a variety of tenors and flexible deposit limits. 

However, before investing in an FD scheme, compare the rates from different issuers and review the tax implications. In this way, you can incorporate FDs into your investment portfolio as a potentially secure and rewarding investment instrument.