AU Small Finance Bank Fixed deposit (FD) interest rates have been increased. the bank has increased FD Rates For regular customers, 6.9 per cent to 7.5 per cent and seniors from 7.4 per cent to 8 per cent, an increase of up to 60 basis points from the previous benchmark for retail deposits. Revised FD Rate of interest With effect from October 10, 2022.

inflation hit returns

India’s inflation is now pegged at 7%. AU Bank provides customers, especially senior individuals, an opportunity to earn returns on their fixed deposits that beat inflation.

Senior Citizen FD Interest Rate

According to the website, “Fixed deposit tenure for resident Indian senior citizens is 24 months 1 day to 45 months, subject to interest rate of 8% per annum.”

saving account

The bank has increased the savings deposit rate by 50 basis points for the balance bucket of Rs. Less than 1 crore Rs. 2 crore, bringing it down to 6.5% per annum. Additionally, the bank maintains its high interest rate of 7% p.a. for balance buckets between Rs. 25 lakh and Rs. 1 crore.

Benefits of Fixed Deposit

According to AU Small Finance Bank, here are some of the benefits of fixed deposits:

• Higher interest rates for senior citizens: If you are a senior citizen then avail special interest rates which are 0.50% higher than the regular rates.
• Nomination Facility: Nominate a beneficiary to claim interest and earnings from your regular fixed deposits in case of any unfortunate event.
• Overdraft facility: Avail overdraft facilities on your fixed deposits as and when required.
• Partial/Premature Withdrawals: Facility to withdraw funds from your Fixed Deposit in case of emergency.
• Low Investment: Start your investment journey with us with as low as Rs.1,000.
• DICGC Insurance: We are a scheduled commercial bank, and your deposits are insured by the Deposit Insurance and Credit Guarantee Corporation (DICGC).
• Options: Choose between callable and non-callable (premature withdrawal not allowed) fixed deposits.

How to Calculate Fixed Deposit Interest

There are two ways in which you can calculate FD interest.

Manually: Use the formula A = P(1 + R/N) ^ N * T where A = Maturity Amount, P = Principal Amount, R = Interest Rate, T = Duration of the FD, and N = Compound Interest Frequency

Digitally: Alternatively, use an online FD interest calculator. All you have to do is input the principal amount, interest rate per annum and the tenure of the fixed deposit, and you will get the maturity amount.