AU Small Finance Bank Fixed Deposit

AU Small Finance Bank offers multiple fixed deposits for various tenures with different interest rates to its investors. The interest rate on AU Small Finance Bank FDs is higher than their savings account. One can invest in AU Small Finance Bank FDs with just a minimum investment of INR 1,000. This article covers AU Small Finance Bank FD, its features and interest rates in detail.

AU Small Finance Bank Fixed deposit schemes

Following are the types of FD schemes that AU Small Finance Bank offers:

• Regular Fixed Deposit
• 5-Year Tax Saving Fixed Deposit

AU Small Finance Bank Regular Fixed Deposit

Under this scheme, the interest is reinvested into the scheme. However, depositors can opt for interest payout for monthly or quarterly intervals instead of compounding.

• Tenure: 7 days to 10 years
• Minimum Deposit Amount: INR 1,000
• Maximum Deposit Amount: No Limit
• PAN Card: Mandatory if the deposit amount at a branch exceeds INR 50,000.
• Premature Withdrawals: Allowed, however the bank will levy a 1% penalty.
• TDS: Applicable if the total interest exceeds INR 40,000 in a year. And INR 50,000 for senior citizen depositors.

AU Small Finance Bank 5-Year Tax Saving Fixed Deposit

Investors can grow their wealth and also benefit from tax exemption by investing in the 5-Year Tax Saving FD.

• Tenure: 7 days to 10 years
• Minimum Deposit Amount: INR 1,000
• Maximum Deposit Amount: INR 1,50,000 per annum.
• TDS: Applicable if the total interest exceeds INR 40,000 in a year. And INR 50,000 for senior citizen depositors.

Key Features of AU Small Finance Bank Fixed Deposit

• Tenure: The tenure of AU Small Finance Bank FD ranges from seven days to ten years. One cannot change the tenure of the AU Small Finance FD once it has commenced.
• Minimum and maximum investment: The minimum investment in AU Small Finance Bank FD is INR 1,000. However, there is no limit on the maximum amount of investment in AU Small Finance Bank FD except for the tax-saving FD, which is INR 1.5 lakhs.
• AU Small Finance Bank FD rates: AU Small Finance Bank FD rates range between 3.5% and 6.5% for regular citizens and between 4% and 7% for senior citizens. Moreover, AU Small Finance Bank offers an additional 0.75% interest to senior citizens on their FDs. Interest is compounded yearly and paid annually to investors. However, there are monthly payout options available as well.
• Premature withdrawal: All AU Small Finance Bank FDs can be withdrawn prematurely except for tax saving FDs. Also, AU Small Finance bank charges a 1% penalty on the interest for all premature withdrawals irrespective of the tenure of investment.
• Loan against FD: AU Small Finance Bank offers loans against their FDs. Also, the interest rate for the loan will be in the range of 4.5%-7.5%.
• Nomination facility: AU Small Finance Bank FD investors can nominate beneficiaries for their FDs.
• Auto-renewal: Investors can opt for auto-renewal of their AU Small Finance Bank FDs.
• Safety: The Deposit Insurance Scheme of RBI covers all AU Small Finance Bank deposits. The scheme covers all AU Small Finance Bank deposits up to INR 5,00,000.
• Additional payments: Investors cannot deposit an additional amount in an AU Small Finance Bank FD once it has commenced. However, they can open a fresh AU Small Finance Bank FD with the new amount.

How to open an AU Small Finance Bank FD deposit account?

One can open an AU Small Finance Bank FD account through various modes such as Internet Banking, Mobile App and offline.

Internet Banking

The following steps will help an individual to open an AU Small Finance Bank FD account through internet banking:

• Login to the AU Small Finance Bank NetBanking account.
• On the home page, choose the ‘Fixed Deposit’ option and select the type of fixed deposit scheme.
• Fill in all personal details, nominee details, deposit duration, interest payout option, payment and maturity instructions.
• Verify the details and click on ‘Submit’ to complete the FD account opening process.

Through Mobile App

AU Small Finance Bank App

The following steps will guide in opening an FD account through AU Small Finance Bank Mobile App:

• In the home menu, choose the ‘Fixed Deposit’ option and select the type of fixed deposit scheme.
• Fill in all personal details, nominee details, deposit duration, interest payout option, payment and maturity instructions.
• Verify the details and click on ‘Submit’ to complete the FD account opening process.

Offline AU Small Finance Bank FD Opening

To open an AU Small Finance Bank FD account offline, one has to visit the nearest AU Small Finance Bank branch. Fill the AU Small Finance Bank FD application form and submit all the necessary documents along with the deposit amount. On successfully processing the application, AU Small Finance Bank will provide an FD receipt.

Documents required to Open an AU Small Finance Bank FD

To open a fixed deposit account with AU Small Finance Bank, one needs the following documents.

• FD application form
• Proof of identity (Passport, Voter ID, Aadhar Card, Driving License, and PAN Card)
• Residence Proof (Bank Statement with Cheque, Aadhar Card, and Passport)
• Proof of date of birth (Birth certificate, NREGA Job Card, Voter ID, Aadhar Card, PAN Card, Service Discharge Certificate)

Eligibility to Open an AU Small Finance Bank FD

To open an FD account with AU Small Finance Bank, one has to be eligible. Following are the individuals that are eligible to invest in AU Small Finance Bank FDs.

• Resident Indians
• Sole proprietorship firms
• Hindu Undivided Families
• Partnership firms
• Limited companies
• Trusts

Does AU Small Finance Bank offer Recurring Deposits?

AU Small Finance Bank offers recurring deposits to its depositors. AU Small Finance Bank RDs have a minimum tenure of 90 days and maximum tenure of 10 years. The minimum investment in AU Small Finance Bank RD is INR 100, and there is no limit on the maximum investment. The interest rate for regular citizens is 4%-6.5% and for senior citizens is 4.5%-7%. One can invest in AU Small Finance Bank RD through either internet banking or mobile banking or by physically visiting an AU Small Finance Bank branch.

How are AU Small Finance Bank FDs taxed?

Only investment in AU Small Finance Bank Tax Saving FDs qualifies for tax saving up to INR 1,50,000 per annum. Investment in no other AU Small Finance Bank FDs qualifies for tax saving under Section 80C of the Income Tax Act. The interest income from AU Small Finance Bank FD is taxable as per the investor’s income tax slab rates. Moreover, the interest income is subject to a TDS of 10% if the income from AU Small Finance Bank FD exceeds INR 40,000 per annum. For senior citizens, the limit is INR 50,000 per annum. Also, if the investor doesn’t disclose PAN Card details to AU Small Finance Bank, then the TDS rate will be 20%.

What are the implications of opening an FD bank account without having a PAN?

If an investor doesn’t disclose PAN details to AU Small Finance Bank, then the bank will TDS at 20% instead of 10%. Also, AU Small Finance Bank will not issue a TDS certificate. Moreover, there won’t be a credit of TDS in income tax returns. Furthermore, all exemption certificates will be invalid.

In how many years FD will double in AU Small Finance Bank?

To know in how many years AU Small Finance Bank FD will double, we can follow the 72 rule. Divide 72 by the interest rate, and the result will be the number of years the AU Small Finance Bank FD will double. For example, for a tenure of 10 years, the AU Small Finance Bank FD interest rate is 7% for senior citizens. An investor can double the investment amount by investing for this tenure in 10.28 years (72/7).

Frequently Asked Questions