AU Small Finance Bank has implemented significant interest rate increases across its deposit products, effective June 10, 2026. According to the bank's press release, the revision covers Fixed Deposits (FDs), Recurring Deposits (RDs), and Foreign Currency Non-Resident (FCNR(B)) deposits. The hike comes despite the RBI holding the repo rate steady at 5.25% following its MPC June review.
Under the revised structure, senior citizens can now earn up to 7.90% per annum on FDs and RDs, representing a significant increase from the earlier 7.75% rate. For regular customers, the maximum interest rate has been set at 7.40% per annum. The bank positions these rates as making AU SFB's offerings among the more competitive and attractive savings avenues in the current rate cycle.
The bank has structured its rates across multiple tenure categories, as reported in the press release. Short-term deposits (7 days to 1 month) offer 3.50% per annum, while medium-term deposits (3 months to 6 months) provide 5.25% per annum. Longer-term deposits (12 months to 36 months) offer 7.10% per annum, with the highest rate of 7.40% per annum available for deposits between 36 months to 45 months. The recurring deposit rates have been revised from 7.25% to 7.40% per annum for regular customers and from 7.75% to 7.90% per annum for senior citizens.
In parallel with the domestic deposit rate revision, AU Small Finance Bank has enhanced its FCNR deposit rates, as stated in the press release. This move is designed to strengthen its NRI banking proposition by offering attractive foreign currency deposit options alongside competitive domestic deposit rates, providing comprehensive banking solutions for non-resident customers.
