FD Rates Hiked: This update may be of interest to you in case you have been considering where you can safely invest your savings. Even a slight rise in the interest rates can make a difference in a time when every additional rupee counts. And this is precisely what has occurred now and it has given a new hope to those who like safe investments.
AU Small Finance Bank has adjusted its interest rates on its fixed deposits and savings accounts, and this has provided customers with a better opportunity to earn more on their deposits. The new rates were effective on April 23, and both new and existing customers may enjoy them.
FD Rates Hiked
| Tenure Duration | General Customers Interest Rate | Senior Citizens Interest Rate |
|---|---|---|
| 7 Days to 1 Month | 3.50% | 4.00% (approx) |
| 3 to 6 Months | 5.25% | 5.75% (approx) |
| 12 to 15 Months | 7.00%+ | 7.50%+ |
| 30 to 36 Months | 7.25% | 7.75% |
| Up to 5 Years | 6.75% | 7.25% |
| Savings Account | Up to 6.75% | Up to 6.75% |
Better Returns That Work harder on your Savings
The recent amendment has seen general customers obtain up to 7.25% interest on fixed deposits. In the case of senior citizens, the reward is even more profitable, with the returns rising up to 7.75% per year.
The bank has also raised the interest rates on savings accounts up to 6.75%. This implies that even idle cash stored in savings accounts is now able to yield better returns than before. This action is particularly useful to people who like to invest in low-risk and have stable and predictable growth.
Best Tenure to maximise benefit
Not every fixed deposit period has the same returns and the appropriate tenure can really count. Deposits of between 30 and 36 months tenure are currently the most attractive in terms of interest rates according to the revised structure.
During this time the general customers can gain up to 7.25 and the senior citizens can gain up to 7.75. This renders mid-term investments the most rewarding option at the time.
Also, the 12-15 months fixed deposits are also good with interest rates over 7 percent and those who are willing to have shorter fixed deposit periods yet have good returns.
Knowledge of Returns in various periods
Even the short term deposits yield low returns as compared to the mid term. Indicatively, 7-12 days to 30 days deposits have an interest rate of approximately 3.50%. When you stretch the period to 3-6 months, the payback goes up to about 5.25%.
In case of long-term deposits but up to 5 years, the interest rate is close to 6.75%. Although this is the same as it was before, it is a little lower than what mid-term deposits are at the moment. This is a clear indication that selecting the right tenure is not any less important than the selection of the right bank.
Who Can Take the Advantage of these new rates
The new interest rates are not restricted to new clients. These changes can also be enjoyed by existing account holders, further making this update more appealing.
Customers are allowed to open fixed deposits via online banking, or in the bank branch. This is made possible by the fact that it is flexible and easy to follow by anyone. This may be a good opportunity to those seeking a safe parking place to leave their money and get higher returns.
A Smarter Next Mover to Safe and Steady Growth
Fixed deposits have been one of the most reliable investment in India. They have been made all the more attractive with this higher interest rate.
In case you want to secure your savings and at the same time achieve consistent returns without taking chances, this update will provide you with a good reason to invest at the moment.
Disclaimer: This is an informational article. Rates and terms can vary according to bank policies. Before making any investments, please ensure that you have checked the most up to date information with the bank itself or even the official site.
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