AU Small Finance Bank Raises FD Rates: Earn Up to 7.75% on Fixed Deposits

In a move that brings good news for savers, AU Small Finance Bank has revised its interest rates on fixed deposits (FDs) and savings accounts. The updated rates came into effect from April 23, 2026, offering customers an opportunity to earn higher returns on their deposits.

This change is expected to benefit both new and existing customers, especially those looking for safe and stable investment options amid uncertain market conditions.

Higher Returns on Fixed Deposits

As per the latest update, the bank is now offering attractive interest rates on FDs:

• Senior Citizens: Up to 7.75% per annum
• General Customers: Up to 7.25% per annum

These revised rates make fixed deposits a more appealing option for investors who prefer low-risk financial instruments with assured returns.

Savings Account Interest Also Increased

Alongside FD rates, the bank has also enhanced returns on savings accounts. Customers can now earn up to 6.75% interest on their savings balance, which is relatively higher compared to many traditional banks.

This means that even idle funds in savings accounts can generate better income than before.

Best Tenure for Maximum Returns

The bank has highlighted that the most attractive interest rates are available for mid-term deposits:

• 30 to 36 months tenure:
  • General customers: Up to 7.25%
  • Senior citizens: Up to 7.75%

Additionally, FDs with a duration of 12 to 15 months are also offering interest rates above 7%, making them a competitive option for short- to medium-term investors.

Interest Rates for Other Tenures

For those considering different durations, here’s a quick breakdown:

• 7 days to 1 month: Around 3.50%
• 3 to 6 months: Approximately 5.25%
• Up to 5 years: Around 6.75%

This tiered structure allows investors to choose a tenure that aligns with their financial goals and liquidity needs.

Who Can Benefit?

The revised rates are applicable to:

• New customers opening fresh deposits
• Existing customers renewing or maintaining FDs

Customers can avail these benefits through both bank branches and digital banking platforms.

Why This Matters for Investors

With rising interest rates in the banking sector, fixed deposits are regaining popularity as a reliable investment avenue. For conservative investors—especially senior citizens—higher FD rates translate into better income stability.

Moreover, compared to market-linked instruments, FDs provide predictable returns without exposure to volatility.

Final Takeaway

The latest rate hike by AU Small Finance Bank comes as a timely opportunity for individuals seeking safe and rewarding investment options. Whether you are planning to park surplus funds or looking for steady income, the revised FD and savings rates offer improved earning potential.

Before investing, it’s always wise to compare rates, check tenure options, and align your choices with your financial goals.