FD Interest Rates Reduced: AU Small Finance Bank Cuts Fixed Deposit Rates — Check Latest FD Rates Here!
Big shock for fixed deposit (FD) investors! AU Small Finance Bank has now revised its FD interest rates after the Reserve Bank of India (RBI) reduced the repo rate. The bank has announced a reduction in interest rates for FDs below ₹3 crore, effective from March 10, 2025.
The new fixed deposit interest rates have now dropped to a maximum of 8% for regular customers and 8.50% for senior citizens. This decision has come shortly after the bank's last revision on January 20, 2025.
If you are planning to invest in a Fixed Deposit (FD), it is essential to check the latest FD interest rates to get maximum returns. In this article, we have provided the complete list of updated FD rates for both general citizens and senior citizens.
✅ Why Did AU Small Finance Bank Reduce FD Rates?
Recently, the Reserve Bank of India (RBI) reduced the repo rate, which has prompted many banks to reduce their fixed deposit (FD) interest rates. Following the same trend, AU Small Finance Bank has also reduced its interest rates for FDs below ₹3 crore.
- Earlier Interest Rate: 8.10% (for general customers).
- New Interest Rate: 8.00% (for general customers).
- Senior Citizen Interest Rate: Reduced from 8.60% to 8.50%.
The revised interest rates have become effective from March 10, 2025. Let's take a look at the updated FD rates.
✅ New FD Interest Rates for General Citizens (Effective from March 10, 2025)
If you are planning to invest in Fixed Deposit (FD) with AU Small Finance Bank, here are the latest interest rates you will receive based on your deposit duration.
📊 AU Green Fixed Deposit - New Interest Rates for General Citizens
| Tenure | New Interest Rate (%) | Annualized Rate (%) |
|---|---|---|
| 7 days to 1 month 15 days | 3.75% | 3.75% |
| 1 month 16 days to 3 months | 5.50% | 5.50% |
| 3 months 1 day to 6 months | 6.00% | 6.14% |
| 6 months 1 day to 12 months | 7.25% | 7.45% |
| 12 months 1 day to 15 months | 7.85% | 8.08% |
| 15 months 1 day to less than 18 months | 7.50% | 7.71% |
| 18 months | 8.00% | 8.24% |
| 18 months 1 day to 24 months | 7.75% | 7.98% |
| 24 months 1 day to 36 months | 7.50% | 7.71% |
| 36 months 1 day to 45 months | 7.50% | 7.71% |
| 45 months 1 day to less than 60 months | 7.25% | 7.45% |
| 60 months to 120 months | 7.25% | 7.45% |
✅ New FD Interest Rates for Senior Citizens (Effective from March 10, 2025)
For senior citizens, AU Small Finance Bank offers higher FD interest rates as compared to general citizens. Here are the updated interest rates:
📊 AU Green Fixed Deposit - New Interest Rates for Senior Citizens
| Tenure | New Interest Rate (%) | Annualized Rate (%) |
|---|---|---|
| 7 days to 1 month 15 days | 4.25% | 4.25% |
| 1 month 16 days to 3 months | 6.00% | 6.00% |
| 3 months 1 day to 6 months | 6.50% | 6.66% |
| 6 months 1 day to 12 months | 7.75% | 7.98% |
| 12 months 1 day to 15 months | 8.35% | 8.62% |
| 15 months 1 day to less than 18 months | 8.00% | 8.24% |
| 18 months | 8.50% | 8.77% |
| 18 months 1 day to 24 months | 8.25% | 8.51% |
| 24 months 1 day to 36 months | 8.00% | 8.24% |
| 36 months 1 day to 45 months | 8.00% | 8.24% |
| 45 months 1 day to less than 60 months | 7.75% | 7.98% |
| 60 months to 120 months | 7.75% | 7.98% |
✅ Why Did AU Small Finance Bank Reduce FD Rates?
The primary reason for the reduction in FD interest rates is the recent decision by the Reserve Bank of India (RBI) to reduce the repo rate. This has resulted in most banks lowering their FD interest rates.
- Earlier FD Rate: Up to 8.10%.
- New FD Rate: Reduced to 8.00% for general customers.
- Senior Citizen FD Rate: Reduced from 8.60% to 8.50%.
However, the bank is still offering higher returns compared to other small finance banks.
✅ Should You Still Invest in FD with AU Small Finance Bank?
Despite the interest rate reduction, AU Small Finance Bank is still offering attractive FD interest rates, especially for senior citizens. Here are a few reasons why you should still consider investing:
✔ Higher Interest Rate Than Most Banks
- AU Small Finance Bank's maximum FD interest rate is 8.50% for senior citizens.
- Most commercial banks are offering a maximum interest rate of 7.25%.
✔ Guaranteed Returns
- Fixed Deposits (FD) offer guaranteed returns without any market risk.
- This makes it a safe investment option for both general citizens and senior citizens.
✔ Flexible Tenure
- You can choose a tenure between 7 days to 10 years.
- This allows you to customize your investment plan according to your financial goals.
✅ Final Words
If you are planning to invest in Fixed Deposits (FD), it is highly recommended to lock in your FD before banks further reduce interest rates. AU Small Finance Bank is still offering higher interest rates compared to most commercial banks.
💡 Pro Tip: If you are a senior citizen, investing in a Fixed Deposit (FD) for 18 months can get you maximum returns of 8.50%.
