This bank offers inflation-beating FD interest rates of up to 8%

AU Small Finance Bank has announced an increase in fixed deposit (FD) interest rates. The bank has increased the FD rates for retail deposits from the previous benchmark of 6.9 percent to 7.5 percent for regular customers and 7.4 percent to 8 percent for seniors, a rise of up to 60 basis points. The revised FD interest rates are effective from October 10, 2022.

Inflation beating returns
India’s inflation is now pegged at 7%. AU Bank offers customers, especially senior persons, a chance to earn returns on their fixed deposits that outpace inflation.

Senior citizen FD interest rate
According to the website, “For Resident Indian Senior Citizens on Fixed Deposits tenure of 24 Months 1 Day to 45 Months , basis 8% interest rate per annum.”

Savings account
The bank has increased savings deposit rate by 50 basis points for balance buckets of Rs. 1 crore to less than Rs. 2 crore, bringing it to 6.5% per annum. Additionally, the bank keeps its higher interest rate of 7% p.a. for balance buckets between Rs. 25 Lakh and Rs. 1 Crore.

Benefits of a fixed deposit
According to AU Small Finance Bank, here are some of the benefits of fixed deposits:

• Higher interest rate for senior citizens: Avail of special interest rates that are up to 0.50% higher than regular rates if you are a senior citizen.
• Nomination facility: Nominate a beneficiary to claim the interest and earnings from your regular Fixed Deposit in case of an unfortunate event.
• Overdraft facility: Avail of Overdraft facilities against your Fixed Deposit as and when required.
• Partial/premature withdrawal: Flexibility to withdraw funds from your Fixed Deposit in case of an emergency.
• Low investment: Start your investment journey with us with as little as INR 1,000.
• DICGC Insurance: We are a scheduled commercial bank, and your deposit is insured by the Deposit Insurance and Credit Guarantee Corporation (DICGC).
• Options: Choose between callable and non-callable (No premature withdrawal allowed) Fixed Deposits.

How to calculate Fixed Deposit interest
There are two ways by which you can calculate FD interest.
Manually: Use the formula A= P(1+r/n)^n*t where A = maturity amount, P = principal amount, r = rate of interest, t = duration of FD, and n = compounded interest frequency
Digitally: Alternatively, use an online FD interest calculator. All you need to do is input the principal sum, rate of interest per annum, and tenure of the Fixed Deposit, and you will get the maturity amount.