You might be looking for a safe investment to grow your surplus funds and build wealth over time. Fixed deposits (FDs) are a traditional favourite when it comes to such investments. Among the various options available, AU Small Finance Bank has distinguished itself. They stand out with their array of fixed deposit products. Their FDs are tailored to meet different financial needs and investment durations. Let’s delve into what makes FDs from AU Small Finance Bank a compelling choice for investors.
Types of Fixed Deposits at AU Small Finance Bank
1. Regular Fixed Deposits
AU Small Finance Bank provides the safety of Regular Fixed Deposits. These are insured by the Deposit Insurance and Credit Guarantee Corporation (DICGC). These FDs offer flexibility to ease the claim process in unforeseen circumstances. Their flexibility features include, the addition of beneficiaries and options for premature withdrawal.
Investors can also choose from monthly, quarterly, or annual interest payout options. This enhances the appeal of managing liquidity according to personal financial needs.
2. 5-year Tax-saving Fixed Deposits
AU Small Finance Bank has designed FDs especially for those looking to avail tax benefits. These FDs allow investors to enjoy exemption on cumulative interest income up to ₹1.50 Lakhs under Section 80C of the Income Tax Act, 1961.
But, these come with a mandatory lock-in period of 5 years. This ensures that the investment also aids in long-term capital formation.
Features and Benefits of AU Small Finance Bank FDs
Competitive FD Interest Rates
One of the key features of AU Small Finance Bank’s fixed deposits is their attractive interest rates. For non-senior citizens, rates can go up to 8.00% per annum. While senior citizens enjoy an extra bonus of 0.50%. This makes it a lucrative option. Especially for individuals looking for considerable returns on their investments.
Flexible Tenors
Investors can choose from a wide range of tenor options, starting as short as 7 days and extending up to 10 years. This flexibility allows investors to align their investment with their financial goals. This also allows them to meet their cash flow requirements.
Multiple Payout Options
The bank offers various interest payout options. This includes monthly, quarterly, annual, and a cumulative payout. A cumulative payout gets credited at the time of maturity. This variety caters to different needs, whether it is regular income or a lump sum amount at the end of the tenor.
Low Minimum Deposit Amount
Starting an FD with AU Small Finance Bank is accessible and hassle-free. The minimum deposit requirement is ₹1,000. This low entry barrier makes it feasible for almost everyone to start investing. It allows everyone to enjoy the benefits of fixed deposits.
Eligibility and Documentation
To open an FD with AU Small Finance Bank, one must be an Indian resident, NRI, or a member of a Hindu Undivided Family. These deposit facilities are also extended to entities such as,
- Partnership firms
- Sole proprietorships
- Limited companies
- Trusts
The process of opening an FD is streamlined with online applications. They have minimal KYC documentation, making it convenient for busy investors. Required documents usually include,
- Identity Proof (such as Voter ID, PAN Card, Aadhaar Card, Driving License, or Passport)
- Proof of address
- A recent passport-size photograph.
Conclusion
In the current financial landscape the safety of your capital is as crucial as returns. Fixed deposits with AU Small Finance Bank offer a blend of both. They come with competitive FD interest rates, multiple payout options, and flexible tenures. So, these FDs cater to the varied needs of conservative and savvy investors alike. You might be planning for short-term financial goals or securing your future with long-term investments. AU Small Finance Bank’s fixed deposit schemes provide a robust platform. These schemes will prove essential to enhance your financial stability and growth.
