AU Small Finance Bank Senior Citizen FD Rates 2025

What is an AU Small Finance Bank Senior Citizen FD?

AU Small Finance Bank Senior Citizen FD is a fixed deposit scheme designed for individuals aged 60 years and above. Investors can choose between cumulative payouts or periodic interest disbursements monthly, quarterly, half-yearly, or annually, based on their income needs, and can receive a high AU Bank FD interest rate. This makes it an ideal option for retired individuals looking for stable returns and effective income planning.

AU Small Finance Bank FD Interest Rates

Senior citizens can earn up to 7.60% p.a. on FDs, based on the chosen tenure. Here are the latest rates:

AU Small Finance Bank Senior Citizen FD Rates (Deposits under ₹3 Crore)

*AU Small Finance Bank Senior Citizen FD interest rates w.e.f. July 03, 2025

Key Benefits of AU Small Finance Bank Senior Citizen FDs

Here are the key benefits of the AU Small Finance Bank Senior Citizen FD scheme, designed to offer safety, flexibility, and higher returns for individuals aged 60 and above:

• Low Minimum Deposit: AU Bank allows opening a fixed deposit account with just ₹1,000, making it highly accessible to all senior citizens across income groups.
• Tenure Flexibility: With FD tenures ranging from 7 days to almost 10 years, AU Bank allows senior citizens to align their investments with their retirement plans, ensuring both short-term access and long-term income stability.
• Premature Withdrawal Facility: Except for tax-saving FDs, AU Bank allows early withdrawal of fixed deposits with just a 1% penalty on interest. This gives senior depositors access to funds during emergencies without major financial loss.
• Deposit Insurance: AU Small Finance Bank: All AU Bank fixed deposits are insured under the RBI’s DICGC scheme for up to ₹5 lakh, offering senior citizens added security.
• Auto-Renewal & Nomination Facilities: AU Bank provides auto-renewal options for uninterrupted savings and allows nomination to ensure smooth fund transfer to beneficiaries, making financial planning easier for senior citizens.
• Sweep-in Facility: The AU Small Finance Bank Sweep-In Facility automatically transfers funds from the Fixed Deposit to the customer’s savings account. This ensures that transactions on hold due to insufficient balance are processed without interruption.

How to Open an AU Small Finance Bank Senior Citizen FD

Senior citizens can open an AU Small Finance Bank Fixed Deposit through both online and offline methods and enjoy the best FD rates on their investments.

1. Online Method

   • AU 0101 App & NetBanking: Log in using your credentials
   • Navigate to the Fixed Deposit Section: Click on “Fixed Deposits” and then choose “Apply Online” to view the available fixed deposit options.
   • Choose the Senior Citizen FD Scheme: Select the Senior Citizen FD option, pick your preferred tenure, and choose your interest payout frequency.
   • Enter Deposit and Nominee Details: Enter the deposit amount (minimum ₹1,000) and provide nominee information for smooth succession planning.
   • Review and Confirm Your Application: Double-check all details, then submit the form to receive instant confirmation and a digital FD receipt.

2. Offline Method

   • Visit the Nearest AU Bank Branch: Go to any AU Small Finance Bank branch with a valid ID and age-proof documents for verification.
   • Fill out the FD Application Form: Ask for the FD form and provide your personal details accurately to proceed with the senior citizen FD application.
   • Select the Senior Citizen FD Option: Choose the senior citizen FD scheme, specify your preferred tenure, and select the interest payout mode.
   • Make the Deposit Payment: Submit your deposit amount using either cash or a cheque as per your convenience at the branch counter.
   • Collect the Fixed Deposit Receipt: Receive your FD receipt containing interest rate, tenure, maturity date, and nominee details for your records.

Taxation on AU Small Finance Bank Senior Citizen FD Interest

• Interest earned on AU Small Finance Bank Senior Citizen FDs is taxable. This interest income is added to your total income and is taxed as per your applicable income slab under the Income Tax Act.
• TDS is deducted by the bank if the total interest earned across all your fixed and recurring deposits with AU Small Finance Bank in a financial year exceeds the threshold.
• For senior citizens, the TDS threshold is ₹50,000 per financial year.
• If your PAN is not provided to the bank, the TDS will be deducted at a higher rate of 20%.
• Senior citizens can claim a deduction of up to ₹50,000 on interest income from deposits with banks, co-operative societies, and post offices under Section 80TTB of the Income Tax Act.
• You can submit Form 15H if your total estimated income for the financial year is below the taxable limit.

Key Takeaways

AU Small Finance Bank offers highly competitive senior citizen FD rates, ranging from 4.00% to 7.60% per annum. Medium-term tenures between 1 and 3 years are particularly rewarding, providing attractive returns for retirees looking to grow their savings. The scheme is accessible, with a low minimum investment requirement of just ₹1,000. It also comes with a host of convenient features, including early withdrawal, auto-renewal, nomination facility, and deposit insurance coverage.