Fixed Deposits (FDs) are a secure way to save money and earn interest. AU Small Finance Bank offers attractive FD rates for senior citizens. Knowing these rates and FD benefits helps you make informed savings decisions.
What is an FD?
A fixed deposit is a savings tool where you deposit a lump sum of money for a fixed tenor. The bank or NBFC pays you interest at a predetermined rate. The interest rate is usually higher than that of a regular savings account.
Benefits of FDs for Senior Citizens
Senior citizens often look for safe investment options with steady returns. FDs are an ideal choice because of the following reasons:
Guaranteed Returns
You earn a fixed rate of interest throughout the tenor
Low Risk
FDs are less risky compared to other investment options like stocks
Flexible Tenors
You can choose a tenor that suits your financial goals
Tax Benefits
Interest earned on FDs is taxable, but senior citizens get higher exemptions under the Income Tax Act, 1961.
AU Small Finance Bank FD Rates for Senior Citizens
AU Small Finance Bank offers competitive FD rates for senior citizens. The interest rates vary based on the tenor of the FD. Here is a detailed table of the interest rates:
Disclaimer: These rates are subject to change. Always check the latest rates on the AU Small Finance Bank website before investing.
How to Calculate FD Returns
AU Small Finance Bank provides an FD calculator on their website. This tool helps you estimate the maturity amount and interest earned on your FD. Here’s how you can use it:
- Input the amount you wish to deposit
- Choose the tenor for which you want to invest
- The calculator will auto-populate the current interest rate based on the tenor
- Click on the calculate button to get the maturity amount and interest earned
Using the FD calculator helps you plan your investments better.
Features of AU Small Finance Bank FDs
AU Small Finance Bank FDs offer several features. These make them a favourable choice for senior citizens:
High Interest Rates
Competitive rates ensure higher returns. This allows senior citizens to maximise their savings effectively.
Premature Withdrawal
You can withdraw your FD before the maturity date, although a penalty may apply. This feature provides flexibility in case of emergencies or unexpected financial needs.
Loan Against FD
You can avail a loan against your FD at a lower interest rate. This option allows you to access funds without breaking the FD. It ensures your savings continue to earn interest.
Nomination Facility
You can nominate a beneficiary for your FD. This ensures your savings are transferred to your chosen person. This is helpful in case of any unforeseen events.
Auto-renewal
FDs can be auto-renewed on maturity, providing continuous returns. This feature is convenient as it eliminates the need for manual renewal. It also ensures uninterrupted growth of your savings.
How to Open an FD with AU Small Finance Bank
Opening an FD with AU Small Finance Bank is simple. Here’s a step-by-step guide:
- Go to the nearest AU Small Finance Bank branch
- Complete the FD application form
- Provide required documents like ID proof, address proof, and senior citizen proof
- Deposit the amount you wish to invest
- The bank will provide an FD receipt with details of your deposit
You can also open an FD online through the bank’s website or mobile app. This process is quick and convenient.
Taxation on FDs for Senior Citizens
Interest earned on FDs is taxable under the Income Tax Act, 1961. However, senior citizens enjoy certain exemptions. These can reduce their tax liability on FD interest.
Section 80TTB
Senior citizens can claim a deduction of up to ₹50,000 on interest income from FDs. This deduction helps lower the taxable income. It makes FDs a more attractive option for senior citizens.
TDS Exemption
If your total income is below the taxable limit, you can submit Form 15H to avoid TDS on your FD interest. This form should be submitted at the beginning of the financial year. This ensures that no tax is deducted at source on your interest earnings.
Understanding these tax benefits can help you maximise your returns from FDs.
Why Choose AU Small Finance Bank FDs?
AU Small Finance Bank is a reliable choice for senior citizens looking to invest in FDs. Here’s why:
Reputation
AU Small Finance Bank is known for its customer service and trustworthiness.
Competitive Rates
The bank offers some of the highest FD rates in the market.
Flexible Options
Various tenors and features cater to different financial needs.
Ease of Access
Opening and managing FDs is easy with both online and offline options.
Conclusion
AU Small Finance Bank FDs are a secure and profitable option for senior citizens. These FDs offer attractive interest rates, flexible tenors, and additional features. They can help you secure your savings and earn steady returns. Use the AU Small Finance Bank FD calculator to plan your investments and make the most of your savings. Always check the latest FD rates and consult with the bank for any queries. Secure your future with AU Small Finance Bank FDs today.