When you ask about the best investment option for your grandparents or any other senior citizen, you would hear the same answer—Fixed Deposit. Saving in Fixed Deposits is so ingrained in the minds of Indians that the traditional form of investment is still one of India's most lucrative investment options.
Depositing money in any of a Fixed Deposit fetches you a higher interest rate than a regular Savings Account. An FD encourages savings and guarantees interest-rich returns. One of the best ways to realize better returns for the future is to remain invested in an FD for the long term.
Let's get to knowmore details of how to open an FD.
What is investing in a Fixed Deposit for a longer duration?
Investing in a Fixed Deposit for a longer duration allows you to invest for a period of 5-10 years. You can easily book a Regular FD online with AU Small Finance Bank for a maximum tenure and earn high interest rates.
Features of investing in a Fixed Deposit for a longer duration
- 1. The minimum amount you need to deposit is INR. 1,000.
- 2. Choose between monthly, quarterly, and cumulative payout options
- 3. Senior citizens earn up to 0.50%* higher interest that is over and above the existing interest rates
- 4. Auto-renewal of term deposits upon maturity.
- 5. You can withdraw your FD investment prematurely, but at the same time, you have to pay withdrawal charges.
- 6. You can nominate beneficiaries for your investment.
Benefits of investing in a Fixed Deposit for a longer duration
- FDs are highly safe as market fluctuations do not influence them.
- Ideal for accumulating savings for long-term goals like a new home, new car, and even retirement.
- Earn assured returns.
- FD rates are attractive & better than Savings Accounts.
- Can be used as collateral to avail of an Overdraft facility.
- Investing in a 5-Year Tax Saving Fixed Deposit helps you save taxes up to INR 1.50 lakhs under Section 80C of the Income Tax Act.
- Ability to withdraw money before maturity in case of emergency.
Fixed Deposit interest rates
The following table shows the Long-Term FD rates for domestic retail: (for amounts less than INR 2 crore)
||Annualized interest rate
|Indian residents & NRIs
||12 months and above
||60 months to 120 months
Eligibility for opening a Fixed Deposit
- The age should be 18 years or above. However, minors can also apply.
- Resident Indians, overseas citizens, individuals of Indian origin, and NRIs can also apply
- Partnership firms, limited companies, sole proprietorship firms, families, HUFs, and trust accounts can also apply for a Long-Term FD.
How to apply for Fixed Deposit?
You can apply for an FD offline and online using AU 0101 App, AU 0101 NetBanking, or directly on the AU Small Finance Bank website.
Below are the steps to apply for FDs online for non-AU Small Finance Bank customers:
- Choose the FD option on the AU 0101 App.
- Enter your PAN and Aadhaar card details for verification and proceed for eKYC.
- Submit FATCA declaration after confirming your personal and financial details.
- Choose your FD type, enter the amount, tenure, bank account, and branch details
- Confirm the particulars and proceed to fund your account.
- Choose to complete your KYC over a video call.
- Confirm your details with AU Small Finance Bank's Video Banking officer, display your PAN card and do your signature over the call.
- Below are the steps to apply for Long Term FDs online for AU Small Finance Bank customers:
- Login to AU 0101 NetBanking and click on FD or RD.
- Click on open new FD or RD.
- Select the type of deposit. Choose 'I have a sum of money to invest for FD and 'I want to invest a sum regularly' for RD.
- Choose the type of FD from the list.
- Select the debit account, and enter details like your amount, tenure, and maturity instruction.
- Click on 'Submit' to open your FD.
Long Term Investment is beneficial:
Saving and investing are the only ways to generate wealth, something everyone must do. Investment in a Fixed Deposit is an ideal way to accumulate adequate savings in a secured manner & fuel many financial goals.
Begin your investment journey with us today!!
*Terms and Conditions apply. Rates are subject to change at the sole discretion of AU Small Finance Bank. For more details, visit our website.