AU Small Finance Bank FD Rates (2026)

1. Key AU Bank FD Highlights You Should Know

Before opening an Fixed Deposit Account with AU Small Finance Bank, keep these important rules in mind:

1. Tax Saver FD: The 5-Year Tax Saver FD offers 6.75% p.a. for regular customers and 7.25% p.a. for senior citizens.
2. Minimum Deposit: You can start an FD with as little as ₹1,000.
3. Monthly Interest Rule: Monthly payout FDs are available only for tenures of more than 3 months.
4. Eligible Customers: Monthly payout FDs are available for Domestic, NRO, Senior Citizen, and Non-Individual depositors.
5. Premature Closure Penalty: If you break your FD before maturity, the bank charges a 1% penalty on the applicable interest rate.
6. DICGC Insurance: AU Bank is an RBI-regulated scheduled commercial bank, and deposits up to ₹5 lakh per depositor are covered under DICGC insurance (including savings accounts and FDs combined).

📌 One Thing to Remember: A slightly higher FD rate looks attractive, but always check the premature withdrawal penalty before investing. If there’s a chance you may need the money early, this 1% penalty can reduce your actual return.

2. Types of AU Bank Fixed Deposits for Resident Indians

AU Small Finance Bank offers multiple FD options for resident Indians, whether you are looking for regular returns, tax savings, better liquidity, or higher rates on large deposits.

Regular customers can earn between 3.50% and 7.25% p.a., while senior citizens receive an additional 0.50% interest, taking the maximum rate up to 7.75% p.a.

1. Regular Fixed Deposit

This is the standard FD option offered by the bank.

• Tenure from 7 days to 10 years
• Minimum deposit starts at ₹1,000
• Premature withdrawal allowed
• 1% penalty applies on early closure
• Suitable for most investors looking for fixed returns

2. 5-Year Tax Saving Fixed Deposit

For investors looking to save tax while earning guaranteed returns.

• Eligible for Section 80C tax benefits up to ₹1.5 lakh
• Mandatory 5-year lock-in period
• Premature withdrawal not allowed
• Regular Rate: 6.75% p.a.
• Senior Citizen Rate: 7.25% p.a.

3. Planet First – AU Green Fixed Deposit

A special sustainable investment variant where the bank directs your capital exclusively into eco-friendly and renewable projects.

• Funds are used for renewable and sustainable projects
• Offers rates similar to regular FDs
• Earn up to 7.25% p.a.
• Minimum deposit amount: ₹5,000

4. Sweep-In Fixed Deposit Facility

Links your FD with your savings account.

• Money is automatically transferred from the FD when your savings balance is insufficient
• Only the required amount is withdrawn
• The entire FD does not get broken

5. Fixed Deposit Overdraft Facility

Provides quick access to funds without closing your FD.

• Loan available against your FD
• Continue earning FD interest on the deposit
• Interest is charged only on the amount borrowed
• Useful during temporary cash shortages

6. Non-Callable Fixed Deposit

Designed for high-value investors.

• Deposit size from ₹1 Crore to below ₹3 Crores
• Premature withdrawal not permitted
• Higher interest rates than standard FDs
• Earn up to 7.35% p.a.

7. AU FD Interest Rates for Senior Citizens

Senior citizens aged 60 years and above get an extra 0.50% interest over regular FD rates at AU Small Finance Bank.

• Extra Interest: +0.50% p.a.
• Highest Senior Citizen Rate: 7.75% p.a.
• Best Tenure: 30 to 36 Months
• Payout Options: Monthly, Quarterly, or Cumulative

📌 Worth Knowing: Many retirees choose monthly payout FDs for regular income, while cumulative FDs usually generate a higher maturity amount through compounding.

3. Interest Payout Options

When opening an eligible AU FD, you can choose how you want to receive your interest.

Cumulative FD

• Interest compounds every quarter
• Full amount paid at maturity
• Best for long-term wealth creation

Monthly Payout FD

• Interest credited every month
• Available for tenures above 3 months
• Suitable for regular income needs

Quarterly Payout FD

• Interest paid every 3 months
• No discounted monthly payout calculation
• Useful for periodic income requirements

📌 What Many Investors Miss:
Most people compare only FD rates, but features like Sweep-In and Overdraft can be just as valuable. They can help you access money during emergencies without breaking your FD and losing interest on the entire deposit.

4. AU Small Finance Bank vs Other FD Rates

Here’s how AU Small Finance Bank compares with other popular banks for deposits below ₹3 crore.

📌 What Many Investors Miss: AU Small Finance Bank may not offer the highest FD rate in the market, but many investors choose it for its balance of competitive returns, nationwide banking services, and features like Sweep-In FDs, overdraft facilities, and flexible deposit options.

5. How to Open an AU Bank FD Online

Existing customers can open a Fixed Deposit in just a few minutes through the AU 0101 Mobile App.

1. Open the AU 0101 Mobile App on your phone.
2. Log in using your mPIN, fingerprint, or Face ID.
3. Go to the Investments & Deposits section.
4. Tap on Open Fixed Deposit.
5. Select the savings account from which you want to fund the FD.
6. Enter the deposit amount (minimum ₹1,000).
7. Choose your FD tenure. For the highest rates, select 30 Months 1 Day to 36 Months.
8. Select your payout option:
   • Cumulative
   • Monthly Interest
   • Quarterly Interest
9. Add or select a nominee from your account records.
10. Review all details and confirm using your transaction PIN. Your digital FD receipt will be generated instantly.

📌 Worth Knowing:
Many customers open an FD in less than 5 minutes through the app because nominee details, KYC information, and linked savings accounts are usually already available in the system.

6. Get an AU Credit Card Against Your Fixed Deposit

If you have a limited credit history or do not want to submit income documents, you can use your AU Fixed Deposit to apply for a secured credit card such as the AU InstaPay or AU Nomad Secured Credit Card.

Key Benefits

• No salary slips or income proof required
• Easier approval since the FD acts as security
• Suitable for first-time credit card users
• Helps build or improve your credit score

Credit Limit Offered

• Credit limit is usually 80% to 90% of your FD amount
• Higher FD value can result in a higher card limit

Dual Advantage

• Your FD continues earning up to 7.25% p.a. for regular customers and 7.75% p.a. for senior citizens.
• At the same time, you can use the credit card for shopping, bill payments, travel bookings, and building your credit history.

📌 A Common Situation:
Many students, freelancers, and first-time card users struggle to get approved for a regular credit card. A secured card backed by an FD can be an easier way to start building a strong credit profile while keeping your savings invested.

Frequently Asked Questions