Senior citizen fixed deposit interest rate hiked by AU Small Finance Bank; get up to 7.9%

Just days after the RBI’s MPC June review, AU Small Finance Bank has hiked interest rates on fixed deposits. The hike has been made even though the RBI held the repo rate steady at 5.25%.

In the press release, the lender stated that the interest rates have been revised across Fixed Deposits (FDs), Recurring Deposits (RDs), and Foreign Currency Non-Resident [FCNR (B)] deposits, effective June 10, 2026.

Under the revised structure, customers can now earn up to 7.40% p.a. on FDs and RDs, while senior citizens can earn up to 7.90% p.a., making AU SFB’s offering among the more competitive and attractive savings avenues in the current rate cycle, added the release.

Also, the bank has revised its recurring deposit rates from the earlier 7.25% to 7.4% per annum, while for senior citizens the rates are revised higher to 7.9% from the earlier 7.75%.

In parallel, the Bank has also enhanced its FCNR deposit rates, further strengthening its NRI banking proposition by offering attractive foreign currency deposit options alongside competitive domestic deposit rates, added the release.