Senior Citizen fixed deposit interest rate cut from 8.6% to 8.5% on 18 months tenure by AU Bank; details here

The AU Small Finance Bank has reduced its fixed deposit interest rates for senior citizens and others by 10 bps. The revised rates offered by the bank will apply from March 10, 2025.

The AU Small Finance Bank (SFB) is now offering up to 8.5% interest rate on FDs to senior citizens and up to 8% to general citizens.

The AU SFB has cut interest rate by 0.1% on FD of 18 months' tenure. The rate has been reduced from 8.6% to 8.5% for senior citizens and 8.1% to 8% for general citizens. These rates have been revised for deposits less than ₹3 crore.

The FD interest rate cut announced by AU SFB is on the expected lines since the repo rate cut announcement by the Reserve Bank of India in February 2025. Ever since the repo rate cut, it has been anticipated that the banks would follow suit by reducing their FD and repo rate-linked home loan interest rates.

AU Small Finance Bank Fixed Deposit Rates (with effect from March 10, 2025)

Source: AU SFB website as of March 10, 2025; above rates are applicable for deposits less that ₹3 crore

AU Small Finance Bank is offering 8.35% interest to senior citizens on deposits of 12 months 1 day to 15 months while 8.25% interest is available on FDs of 18 months 1 day to 24 months.

Deposits up to ₹5 lakh in small finance banks and other banks are covered by the RBI's deposit insurance policy.