If you’re planning to invest your money in a fixed deposit (FD) or a savings account, there’s some positive news.
AU Small Finance Bank has increased its interest rates, giving customers a chance to earn better returns.
The new rates have come into effect from April 23, and both new as well as existing customers can take advantage of this update.
Higher Returns on FDs and Savings Accounts
The bank has raised interest rates across different deposit options. Senior citizens can now earn up to 7.75% annual interest on fixed deposits, while general customers can get up to 7.25%.
Not just FDs, savings account holders also benefit. The interest rate on savings accounts has gone up to 6.75%, which means your regular savings can now generate better income than before.
Best FD Tenure for Maximum Benefit
To get the highest returns, choosing the right tenure is important. As per the latest rates, FDs with a duration of 30 to 36 months offer the best interest.
General customers: up to 7.25%
Senior citizens: up to 7.75%
Apart from this, FDs with 12 to 15 months tenure are also offering interest rates above 7%, making them another good option for investors.
Interest Rates for Short and Long Tenure
For short-term deposits, the returns are slightly lower.
7 days to 1 month: around 3.50%
3 to 6 months: around 5.25%
On the other hand, long-term FDs of up to 5 years offer interest of about 6.75%, which is still a decent return for safe investments.
Who Can Take Advantage?
These revised interest rates are available to both new and existing customers. You can invest through a bank branch or use online banking services.
For people looking for a safe and stable investment option, this is a good opportunity. With the increase in rates, fixed deposits
and recurring deposits (RDs) have become even more attractive, especially for senior citizens who depend on regular income.
