AU Small Finance Bank hikes fixed deposits rates by 60 bps to 7.5%

AU Small Finance Bank on Wednesday said it has hiked fixed deposit rates by 60 basis points to 7.5 per cent for regular customers.

Senior citizens will get an interest of 8 per cent on their fixed deposits.

The increased rates have come to effect from October 10, 2022.

The bank has hiked the fixed deposit rates by up to 60 basis points for retail deposits from flagship 6.9 per cent to 7.5 per cent for regular customers and 7.4 per cent to 8 per cent for senior citizens, it said in a release.

The Jaipur-based small finance bank said with the hike in fixed deposit rates, it is offering one of the most competitive fixed deposit interest rates in the industry and customers can get maximum return on their investments.

In the rising inflation scenario, the hike in fixed deposit rates gives the customers an opportunity, particularly senior citizens, to get inflation-beating returns from their fixed deposits, the lender added.

Also, savings deposit holders of Rs 1 crore and less than Rs 2 crore will get an additional 0.50 per cent at 6.5 per cent per annum.

The bank also continues to offer a higher interest rate of 7 per cent per annum for balance buckets of Rs 25 lakh to less than Rs 1 crore, it said.

"With the recent spate of repo rate hikes announced by the RBI, we have increased the FD rates to extend the maximum benefit to our customers. Currently, we are offering one of the most competitive rates in fixed deposits in the industry," Uttam Tibrewal, Executive Director, AU Small Finance Bank, said.