AU Small Finance Bank gets universal bank status, FD rates range from 3.50% to 7.1%

AU offers rates starting from 3.50% p.a. for durations up to 1 month 15 days, rising gradually to 7.10% p.a. for tenures 24 to 36 months. For shorter tenures such as 3 months to up to 6 months, this SFB offers 5.25% p.a., while 6 to 12 months bring 6.35% p.a. Mid-term FDs ranging from 12–24 months are pegged at 6.90% p.a. These fixed deposit rates for retail deposits under ₹3 crore are effective from July 3, 2025.

The Bank offers up to 0.50% higher than standard rates on retail deposits below ₹3 crore for senior citizens. The interest begins at 4.00% p.a. for tenures up to 1 month 15 days and gradually increases, with exceptional returns such as 7.60% p.a. for deposits between 24 and 36 months.

Mid-range tenures, including 12 to 24 months, carry attractive rates up to 7.40% p.a., while long-term durations of 36 to 60 months offer 7.50% and 7.25% p.a., respectively.

AU Small Finance Bank has become the first SFB in India to receive in‑principle approval from the central bank to transform into a Universal Bank.

As per the RBI’s notification, AU will now begin working towards fulfilling the regulatory and operational requirements needed to complete its transition. The application for this transition was submitted on September 3, 2024.

How will bank customers benefit?

"In short, as AU or any SFB becomes a universal bank, customers stand to benefit from wider product offerings, improved service features, and a stronger banking partner overall. Once the transition is complete, AU will be able to broaden its services, offering larger loan sizes, and introducing new products beyond the scope of a typical SFB," said Mumbai-based tax and investment expert Balwant Jain.