Recurring Deposits

You can build your wealth securely through regular investments at attractive Interest rates. With AU Small Finance Bank for a much smaller investment per month, you can get interest rates similar to that of a regular Fixed Deposits. Start with an investment as small as INR 100. Enjoy a minimum tenure of 3 months up to a maximum tenure of 10 years.

Eligibility
  • Resident individuals
  • Non-resident individuals
  • Hindu Undivided Families
  • Private & Public Limited Companies
  • Trust & Societies

Resident Individuals cannot open a Recurring Deposit without a linked Savings Account. For NRI customers, the minimum tenure is 12 months.

Payment of interest on Recurring Deposits
  • Interest is only paid on maturity.
  • TDS will be deducted when interest payable or reinvested on Recurring Deposits and Fixed Deposits per customer, across all branches, exceed Rs.10000 in a financial year.
  • TDS on Recurring Deposit is applicable as per Finance Act 2015. For NRE Recurring Deposit - Interest and principal is tax free in India and fully repatriable.
  • Minimum period for NRE Recurring Deposit is 1 year.
Payment of Installment
  • The instalment amount once fixed cannot be altered at any later date.
  • If more than one installment is overdue at the time of installment, the paid installment, if sufficient will cover only that one instalment. This installment will be appropriated towards the first or earliest installment overdue.
  • Partial payment of installments will not be permitted.
  • For premature withdrawals, the Bank will levy a penalty of 1% on the applicable rate.
Tenure
  • The Recurring Deposit account has a minimum tenure of one month.
  • In the case of premature closure within a month, no interest shall be paid to the depositor and only his principal amount shall be returned.
Maturity
  • Interest is paid only on maturity.
  • The Deposit shall be due for repayment and shall mature on completion of the contracted tenure, even if there are instalments still to be paid.
  • The maturity amount mentioned on the Recurring Deposit confirmation advice, is subject to the payment of all installments on time.
  • In case of any delay in the payment of scheduled installments, the maturity amount shall change.
Overdue Installments

If frequent defaults (non-payments) are observed in monthly installments, and three installments fall in debts, the Bank reserves the right to close the RD account. The interest rate applicable on such closed accounts will be as per the premature withdrawal policy of the Bank.