AU Small Finance bank ups savings deposit rate to up to 6.75%

AU Small Finance Bank today announced an increase in interest rates on its savings account deposits to up to 6.75 per cent.

The new rates are effective from April 11. For savings account customers keeping balances between Rs 10 lakh to Rs 10 crore, the rate has been increased by 25 basis points to 6.75 per cent per annum.

For savings account balances between Rs 1 lakh to Rs 10 lakh, the rate has been revised by 50 basis points to 6.50 per cent per annum, while for the balances below Rs 1 lakh, the rate has been left unchanged at 5 per cent.

"In our deposit book of Rs 7,800 crore, purely savings account balances comprise nearly 23 per cent and as a strategy we want to increase this share more as it brings a multiplier effect and provides a lot of opportunities for cross-selling of products," the bank's managing director and CEO, Sanjay Agrawal, said.

At present, the bank's savings account deposit stands at around Rs 1,800 crore. It started its operation as a small finance bank from April 2017.