AU Small Finance FD Interest Rates: AU Small Finance Bank (AU SFB) has made a 10 basis points (bps) reduction in its fixed deposit (FD) interest rates for senior citizens for the 18-month tenure. As reported by CNBC TV18, these new rates will be effective starting March 10, 2025.
The interest rate for senior citizens has been decreased from 8.6% to 8.5%, while for the general public, the rate has been lowered from 8.1% to 8%. This change applies to deposits under ₹3 crore.
This adjustment follows the Reserve Bank of India’s (RBI) decision to cut its repo rate in February 2025. The repo rate, which is the rate at which the RBI lends to banks, typically influences banks to alter their FD interest rates in response.
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Updated FD Rates
- Senior Citizens: The revised interest rate for senior citizens on 18-month FDs is now 8.5%
- General Citizens: The new interest rate for 18-month FDs is 8%.
These adjustments are part of a wider trend in the banking industry in light of the RBI’s recent repo rate cut.
Deposit Insurance Policy Overview
The RBI’s deposit insurance policy protects deposits up to ₹5 lakh in small finance banks as well as other banks. This ensures that customers’ deposits of up to ₹5 lakh remain secure, even if a bank encounters financial difficulties.
Reasons for AU SFB’s Reduction in FD Rates
Banks frequently revise their interest rates in accordance with changes in the RBI’s repo rate. A reduction in the RBI’s repo rate lowers borrowing costs for banks, prompting them to decrease fixed deposit interest rates.
By lowering its FD rates, AU SFB is aligning with the prevailing trend, seeking to manage its costs while still providing attractive rates to its customers.
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If you’re an AU SFB customer or considering opening a fixed deposit, it’s wise to review the new rates and their implications for your savings. For further information, visit the bank’s official website or reach out to their customer service.
For those seeking better returns, exploring alternative investment options or comparing rates from different banks may prove beneficial.
AU Small Finance FD Interest Rates
| Tenure | General Citizen Rates | Senior Citizen Rates |
| 7 Days to 1 Month 15 Days | 3.75% | 4.25% |
| 1 Month 16 Days to 3 Months | 5.50% | 6.00% |
| 3 Months 1 Day to 6 Months | 6.00% | 6.50% |
| 6 Months 1 Day to 12 Months | 7.25% | 7.75% |
| 12 Months 1 Day to 15 Months | 7.85% | 8.35% |
| 15 Months 1 Day to | 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 | 7.25% | 7.75% |
| 60 Months to 120 Months | 7.25% | 7.75% |
