8.00% Returns In 18 Months: This Bank Revises FD Rates; Check Details

In line with the Reserve Bank of India's (RBI) announcement of the second bi-monthly monetary policy for the fiscal year 2024-25, AU Small Finance Bank (SFB) increased interest rates on fixed deposits of less than Rs 2 Cr. The RBI Governor stated that the Monetary Policy Committee (MPC) had chosen to maintain the benchmark repo rate at 6.5% for the eighth consecutive period. On Friday, 7th June, AU SFB hikes FD rates and is now offering as much as 8.00% for the general public and 8.50% for senior citizens on a tenure of 18 months.

AU SFB FD Rates

The bank is giving an interest rate of 3.75% on domestic term deposits below Rs 2 Cr that mature in 7 days to 1 month and 15 days. AU Small Finance Bank is offering an interest rate of 5.50% on deposits that mature in 1 month and 16 days to 3 months. Interest rates of 6.00% and 7.25% are available from AU Small Finance Bank for fixed deposit terms ranging from three months and one day to six months and six months to twelve months, respectively. A 7.85% interest rate will be paid on deposits maturing in 12 months, 1 day to 15 months, and a 7.50% return will be paid on deposits maturing in 15 months, 1 day to less than 18 months.

The bank offers an interest rate of 8.00% on fixed deposits maturing in 18 months, while AU Small Finance Bank pays an interest rate of 7.75% on those maturing in 18 months, 1 day to 24 months. Interest rates are as follows: AU Small Finance Bank pays 7.50% on deposits maturing in 24 months, 1 day to 45 months, and 7.25% on deposits maturing in 45 months, 1 day to 120 months.

Senior citizens will get an additional benefit of 50 bps higher than the standard rates across tenures. "Only Resident Indian Senior Citizens (of 60 years of age and above) are eligible for the Senior Citizen Interest rate specified. The special rates are applicable only for Resident deposits," mentioned AU Small Finance Bank on its website.

According to (FAQs: TDS on Term Deposit / Recurring Deposit) section on the website of AU Small Finance Bank, "For Fixed Deposits/ Recurring Deposits, TDS is not applicable on the interest earned up to Rs. 40,000 under Section 194A. However, TDS will be applicable if the interest received or likely to be received, during the financial year, exceeds Rs. 40,000. Further, in case of Senior Citizen, TDS will be applicable if the interest received or likely to be received, during the financial year, exceeds Rs. 50,000. All customers other than a company, firm or non-resident, whose tax on their estimated total income during the year will be nil, can submit a self-declaration form in the prescribed Form 15G/15H for the purpose of availing TDS exemption under section 194A of the Income Tax Act in accordance with the provisions of section 197A. A fresh Form 15G/15H is required to be submitted for each Financial Year. Form 15G/15H should be submitted at the time of creation of FD or beginning of Financial Year whichever is earlier. Further, fresh Form 15G/H needs to be submitted for all subsequent deposit(s) booked during the Financial Year. Following are the limits for accepting Form 15G/ 15H. In case the limits are breached, Form 15G/ 15H will not be accepted."

"As per Rule 114B of Income Tax Rules read with section 139A of Income Tax Act, you are required to quote a valid PAN for the purpose of creating Fixed Deposit (s)/Recurring Deposit(s) of more than Rs. 50,000 in a single day or if the aggregate amount (for all the FDs & RDs created in a financial year) exceeds Rs. 5,00,000 during the financial year. In case, you do not have a PAN, then you are required to furnish the declaration in Form 60," AU Small Finance Bank has mentioned on its website for fixed deposit investors.