AU Small Finance Bank is a popular bank in India. It offers a range of FD options for senior citizens.

AU Small Finance Bank is a popular bank in India. It offers a range of FD options for senior citizens. These FDs come with attractive interest rates, ensuring a steady income. AU Small Finance Bank FDs could be a good choice for retirees looking to maximise returns. The bank is known for its customer service and its financial stability makes it a reliable partner for managing your savings.

Current FD Rates for Senior Citizens

Here are the  AU Small Finance Bank FD rates for senior citizens as of July 2024:  

Note: These rates are subject to change at the issuer’s discretion. 

These rates allow senior citizens to earn more on their deposits. They are higher than regular rates. Higher interest rates help retirees secure a stable income source. The higher interest rates incentivise senior citizens to invest their savings in FDs. This ensures a better return on their investment.

How to Use the AU Small Finance Bank-FD Calculator

The AU Small Finance Bank-FD calculator is a useful tool. It helps you calculate the interest and maturity amount on your FD. Here’s how to use it:

1. Visit the AU Small Finance Bank website
2. Go to the FD calculator page
3. Input the lump sum you plan to deposit
4. Choose the duration of your FD
5. Mention whether you’re a senior citizen 
6. Click the calculate button to see your interest earnings and maturity amount

This tool helps you plan your investments better. You can compare different tenors and choose the one that maximises your returns. For instance, if you are planning for a short-term investment, you can see the returns for a 6-month FD. For long-term goals, you can compare the returns for tenors of up to 5 years or more.

Benefits of AU Small Finance Bank-FDs for Senior Citizens

Higher Interest Rates

As shown, senior citizens get higher interest rates. The higher interest rate boosts your investment earnings. Over time, this can significantly increase your returns.

Flexible Tenors

Choose from a range of tenors to suit your needs. Whether you need funds in the short term or want to save for the long term, you can find a suitable tenor.

Safety

FDs are a safe investment, not linked to market risks. Your principal amount is secure, and you earn a fixed return.

Regular Income

Earn regular interest payouts if you choose non-cumulative FDs. This can be especially beneficial for retirees needing a steady income stream.

Loan Facility

Avail loans against your FD in case of emergencies. This feature ensures liquidity without breaking your FD prematurely.

Important Considerations

Premature Withdrawal

AU Small Finance Bank allows premature withdrawal of FDs. However, it comes with a penalty. It’s crucial to understand the penalty charges before opting for early withdrawal. This feature provides flexibility but should be used judiciously.

Tax Implications

Interest earned on FDs is taxable. Senior citizens can claim deductions under Section 80TTB of the Income Tax Act, 1961. This deduction could help reduce your tax liability, enhancing your net returns.

Reinvestment Options

On maturity, you can reinvest your FD to continue earning interest. AU Small Finance Bank provides easy reinvestment options. Reinvesting can help compound your earnings over time.

Tips for Maximising Returns

Choose the right tenor

Select a tenor that aligns with your financial goals. Longer tenors often offer higher interest rates.

Laddering strategy

Spread your investments across multiple FDs with different tenors. This strategy provides liquidity at regular intervals and reduces interest rate risk.

Non-cumulative option

If you need regular income, choose non-cumulative FDs. This option allows you to receive the interest payout on a monthly, quarterly, half-yearly, or annual basis. 

Monitor interest rates

Keep an eye on interest rate changes and re-invest when rates are favourable.

AU Small Finance Bank FDs could be an excellent choice for senior citizens. The bank offers higher interest rates, ensuring a stable income post-retirement. Use the AU Small Finance Bank-FD calculator to plan your investments effectively. Consider the benefits and terms before investing to maximise your returns. Choosing the right FD options helps retirees secure their financial future. It also ensures peace of mind.