Summary : AU Small Finance Bank Limited’s published retail fixed-deposit schedule lists domestic, NRE and NRO deposits below ₹3 crore, with callable resident deposits available across terms from seven days to 120 months. The rate table checked on 10 November 2026 states that the general domestic retail rates are effective from 1 September 2026. For the 30-month-one-day to 36-month slab, the published rate is 7.40% per annum and the annualised yield is 7.61%. The separate senior-citizen table, stated to be effective from 10 June 2026, shows 7.90% and an annualised yield of 8.14% for the same slab, restricted to eligible resident Indian individuals aged sixty or more who have a banking relationship with the bank. Callable deposits permit premature withdrawal, but the bank applies the lower of the contracted-tenure base rate and the rate for the actual period held, followed by the current 1% premature-closure penalty. Domestic deposits closed within seven days earn no interest. From 1 April 2026, resident bank-interest withholding falls under section 393 of the Income-tax Act, 2025, with thresholds of ₹50,000 for a person other than a senior citizen and ₹1,00,000 for a senior citizen. DICGC cover aggregates principal and interest up to ₹5 lakh in the same right and capacity across all branches of the bank.
- Published Retail Rates Checked on 10 November 2026
- Callable Means Liquidity With a Formula, Not Penalty-Free Exit
- Why the booked headline rate may not determine the exit return
- Payout Choice Changes Cash Flow and Displayed Rate
- Senior-Citizen Rate Is Eligibility-Based
- Tax Treatment From 1 April 2026
- Declarations and PAN require current-year verification
- DICGC Protects an Aggregate, Not Every Receipt Separately
- Booking and Review File
- Frequently Asked Questions
- What is AU Small Finance Bank’s highest general rate in the published callable table checked for this article?
- What does the senior table show for that slab?
- Is a callable FD freely withdrawable at the booked rate?
- Is interest paid when a domestic FD is closed within seven days?
- What are the resident bank-interest TDS thresholds for Tax Year 2026-27?
- Does DICGC insure each fixed-deposit receipt up to ₹5 lakh?
- Does this article recommend the AU callable FD?
- Key Takeaways
Published Retail Rates Checked on 10 November 2026
The operative rate is the rate offered when the bank actually receives the funds, not a rate copied earlier into an illustration. AU Small Finance Bank states that rates are subject to periodic change and depositors should ascertain the rate on the booking date. The table below reproduces selected callable domestic retail slabs below ₹3 crore from the official rate page; it is not a ranking or recommendation.
| Tenure | General rate | Senior-citizen rate |
|---|---|---|
| 7 days to 1 month 15 days | 3.50% | 4.00% |
| 6 months 1 day to 12 months | 6.35% | 6.85% |
| 12 months 1 day to 15 months | 7.10% | 7.60% |
| 24 months 1 day to 30 months | 7.10% | 7.60% |
| 30 months 1 day to 36 months | 7.40% | 7.90% |
| 36 months 1 day to 45 months | 7.00% | 7.50% |
| 60 months to 120 months | 6.75% | 7.25% |
For the 30-month-one-day to 36-month slab, the bank publishes annualised yields of 7.61% for the general category and 8.14% for the senior category. Yield assumes the bank’s compounding convention and does not equal the stated annual rate or a guaranteed net return after tax and possible premature closure. The deposit receipt should show the principal, tenure, rate, maturity instruction, nomination and payout option actually booked.
Callable Means Liquidity With a Formula, Not Penalty-Free Exit
The bank distinguishes callable and non-callable deposits. A callable fixed deposit may be withdrawn before the contracted maturity, subject to the bank’s rules and any lien. On premature closure, the bank first identifies the lower of two base rates: the base rate for the original contracted tenure, and the base rate that applied on the booking date to the period for which the deposit actually remained. It then applies the premature-closure penalty, currently 1% for retail deposits, including sweep-in and partial closure.
Why the booked headline rate may not determine the exit return
Suppose a depositor books a deposit in the 30-month-one-day to 36-month slab but closes it after a shorter period. The bank does not simply subtract one percentage point from 7.40%. It compares the relevant base rates under its published formula using the booking-date schedule, chooses the lower base and then applies the penalty. The exact result depends on the original receipt, actual completed tenure, the applicable historical rate card, customer category and bank computation. A depositor should request the premature value before authorising closure.
For a domestic fixed deposit withdrawn within seven days, the bank states that no interest is paid. A tax-saving fixed deposit is different: the official page states that it has a sixty-month tenure, and the support page says it cannot be prematurely withdrawn. This article concerns the ordinary callable resident deposit, not the non-callable or tax-saving variants.
| Event | Official term | Control before action |
|---|---|---|
| Normal maturity | Interest follows booked rate and payout option | Match receipt, maturity date and bank credit |
| Premature callable closure | Lower applicable base rate, then 1% penalty | Obtain quotation and retain calculation |
| Closure within seven days | No interest on domestic deposit | Confirm booking and closure timestamps |
| Tax-saving deposit | Five-year lock-in; no premature withdrawal | Do not confuse with ordinary callable FD |
| Deposit under lien | Online closure may be unavailable | Check lien or overdraft status |
Payout Choice Changes Cash Flow and Displayed Rate
The bank offers cumulative and periodic payout structures. Monthly payout deposits are available only for tenures above three months and use discounted rates displayed in a separate table. Quarterly or other non-cumulative options may produce cash flow before maturity, while a cumulative deposit retains interest under the stated compounding mechanism. A depositor should compare the specific payout rate, not apply a cumulative annualised yield to a monthly product.
Interest computation is based on the actual number of months and days in the year. Where a deposit spans a leap and non-leap year, the bank uses 366 and 365 days respectively. Maturity calculators are therefore illustrations. The deposit advice and final system calculation control the bank obligation, subject to correction of any error under the contractual terms.
Senior-Citizen Rate Is Eligibility-Based
The published senior table is limited to resident Indian individual senior citizens aged sixty or above who have a banking relationship with AU Small Finance Bank. The special rate is for resident deposits. The first holder and account constitution can affect eligibility, and an NRE or NRO deposit should not be assumed to receive the resident senior benefit. Identity and date-of-birth data should be correct before booking because later reclassification is not automatic.
Tax Treatment From 1 April 2026
Fixed-deposit interest is income and the bank’s withholding does not determine final tax liability. For a sum credited or paid on or after 1 April 2026, the Income-tax Act, 2025 applies. Section 393(1), Table item 5(ii), sets the resident bank-interest threshold at ₹1,00,000 for a senior citizen and ₹50,000 for a person other than a senior citizen. Once the aggregate covered interest exceeds the threshold, tax is deducted at the applicable rate under the statutory provisions. Interest across deposits with the bank must be aggregated as required; splitting principal into several receipts does not create a fresh threshold for each receipt.
TDS is a collection mechanism. Interest remains part of taxable income under the applicable computation rules even when no tax is deducted because the threshold is not crossed or a valid declaration applies. The depositor should reconcile the interest certificate, Form 26AS or annual information statement, books and return. Senior citizens should separately examine any deduction available for eligible deposit interest under the law and regime applicable to them; the TDS threshold and an income deduction are different concepts.
Declarations and PAN require current-year verification
A declaration seeking non-deduction can be used only when the statutory eligibility conditions are satisfied and the current prescribed form is correctly furnished. It is not an exemption certificate for every depositor. A missing or invalid PAN can change the withholding result. The bank’s record should be updated well before interest credit, and any lower or nil deduction position should be supported by the current Income-tax Rules, 2026 and portal process.
DICGC Protects an Aggregate, Not Every Receipt Separately
AU Small Finance Bank Limited appears in the Reserve Bank of India list of scheduled small finance banks, and DICGC’s guide states that deposits with insured banks, including fixed deposits, are covered. The ceiling is ₹5 lakh for principal and accrued interest together for each depositor in the same right and same capacity. Balances across savings, current, recurring and fixed deposits at all branches of the same bank are aggregated. Several receipts or branches do not multiply the cover.
Different rights and capacities can receive separate treatment under DICGC rules, but names, order of joint holders and legal capacity must genuinely differ in the manner recognised by the scheme. Deposit insurance is not a guarantee of rate, liquidity on demand, immediate access in every stress event or protection beyond the statutory limit. A maturity amount above ₹5 lakh does not become fully insured merely because the original principal was below that amount.
Booking and Review File
Save the official rate page or bank rate card applicable on the booking date.
Confirm callable status, amount category, tenure slab, customer category and payout option on the receipt.
Record nomination, operating instructions and maturity or renewal instructions.
Track aggregate annual interest for tax and withholding rather than receipt by receipt.
Aggregate all same-right and same-capacity balances when assessing DICGC exposure.
Before premature closure, obtain the bank’s value and rate calculation in writing or through the authenticated channel.
Frequently Asked Questions
What is AU Small Finance Bank’s highest general rate in the published callable table checked for this article?
The 30-month-one-day to 36-month slab shows 7.40% per annum for the general category, effective 1 September 2026.
What does the senior table show for that slab?
It shows 7.90% per annum and an annualised yield of 8.14%, subject to the bank’s resident senior-citizen eligibility conditions.
Is a callable FD freely withdrawable at the booked rate?
No. Premature closure uses the lower applicable base-rate comparison and then the current 1% penalty. The actual value should be obtained from the bank.
Is interest paid when a domestic FD is closed within seven days?
The official terms state that no interest is paid on a domestic deposit withdrawn within seven days of booking.
What are the resident bank-interest TDS thresholds for Tax Year 2026-27?
Section 393 specifies ₹1,00,000 for a senior citizen and ₹50,000 for a person other than a senior citizen, subject to the Act and applicable conditions.
Does DICGC insure each fixed-deposit receipt up to ₹5 lakh?
No. Principal and interest across all deposits at all branches of the same bank are aggregated in the same right and capacity, with a combined ceiling of ₹5 lakh.
Does this article recommend the AU callable FD?
No. It reports verified terms and compliance points without ranking the product or predicting future rates.
Key Takeaways
Verify the live rate at booking because AU Small Finance Bank says rates may change periodically.
The 30-month-one-day to 36-month slab currently carries the highest published callable rate in the cited general and senior tables.
Premature closure uses a lower-base-rate comparison plus the current 1% penalty; it is not simply the booked rate minus 1%.
From 1 April 2026, resident bank-interest withholding is governed by section 393 of the Income-tax Act, 2025.
DICGC’s ₹5 lakh ceiling aggregates principal and interest in the same right and capacity across the bank.
*****
Disclaimer: This article is a neutral educational summary of AU Small Finance Bank Limited’s callable retail fixed-deposit terms and official regulatory and tax material checked on 10 November 2026. It is not investment, deposit, legal, tax or financial advice; it does not recommend the bank, a tenure, an amount, a payout option or premature closure, and it does not rank the product or predict interest rates, inflation, bank performance or future regulation. Deposit rates, annualised yields, eligibility, amount slabs, senior-citizen benefits, compounding, payout conventions, lien rules, online functionality and premature-closure penalties may change without this article being updated. The rate and terms recorded on the authenticated deposit receipt and the bank’s operative policy at booking or closure must be verified directly. Illustrations are not maturity quotations. Tax treatment depends on residence, age, PAN, aggregate interest, applicable regime, declarations, total income and the law in force when interest is credited or paid; TDS is not final tax. DICGC cover is statutory, conditional and aggregated by right and capacity, and does not insure each receipt separately or guarantee immediate liquidity. Depositors should assess concentration, liquidity, taxation, nomination and documentation with qualified advisers and the bank. TaxGuru accepts no responsibility or liability for any loss of interest, penalty, tax demand, uninsured balance, access delay, renewal outcome, rate change, calculation difference or other consequence arising from reliance on this article, incomplete customer data, bank-system treatment or later changes in law or product terms.
