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Q1. What are the various Fixed Deposits (FD) products that are available to me?

  Residents Sr. Citizens Staff Calendar NRE NRO
Re-investment Y Y Y Y Y Y
Payout monthly Y Y Y Y Y Y
Payout quarterly Y Y Y Y Y Y

Q2.What is a Reinvestment or Cumulative FD?

A Reinvestment or Cumulative FD is a Term Deposit, interest is compounded quarterly and reinvested with principal amount. Interest is paid out at maturity

Q3.What is a Pay-out FD?

A Pay-out FD is a Term Deposit, where interest will be paid out at monthly or quarterly intervals, based on your choice. Pay-out quarterly FD can be booked directly through any of the Bank branches, through Net Banking or through Mobile Banking, while pay-out monthly FD can be booked only through branches.

Q4.What is a Calendar FD?

Interest on FDs is typically calculated on anniversary basis where time period reference is the date of account opening. In a Calendar FD, interest calculations are based on actual month/quarter/financial year. Interest is accrued till the end of current financial year/quarter/month and paid out or reinvested. Thereafter, all accruals, compounding and pay-outs happen at the end of month/quarter/financial year.

Q5.What is a Tax Saving FD?

A Tax Saving FD is a Term Deposit that has a tenure of 5 years and can be booked for a maximum amount of Rs. 1.5 Lacs only. The amount invested in a Tax Saving FD can be claimed as a deduction under Section 80C of the Income Tax Act. PAN number is mandatory for booking a Tax Saving FD.

Q6.What are the features of a Tax Saving FD?

The features of a Tax Saving FD are:
  1. Investment Amount: Maximum Rs. 1.5 Lacs (in a Financial Year)
  2. Tenure: a locked in fixed tenure of 5 Years
  3. Benefit: In case of joint deposits, the tax benefit under Section 80C will be available only to the first holder of the deposit

Q7.What is the minimum tenure for which I can book an FD?

You can book an FD for a minimum tenure of 7 days. Tax Saver FDs can only be booked for a fixed tenure of 5 years.

Q8.Can I credit interest earned on my FD to another account after booking the FD?

You can transfer the interest earned on your FD (pay-out or re-investment) to your linked Current or Savings account.

Q9. Does the deposit in FD get automatically renewed?

On maturity of the deposit, bank will undertake necessary action as per the maturity instructions specified by you at the time of booking the deposit. In case there are no maturity instructions specified or the Bank does not receive any other instructions prior to maturity, Bank will automatically renew the deposit for the same period at the prevailing rates of interest on maturity.

Q10. Can a senior citizen open a joint account with a non-senior citizen for Regular Fixed Deposit?

Yes, it can be done as long as the first account holder is a senior citizen.

Q11. What interest rate do I get if I encash my FD prematurely?

The Bank, on request from you, allows withdrawal of a Fixed Deposit before completion of the period of the deposit agreed upon at the time of placement of the deposit. This will be subject to penalty as may be applicable at the time of withdrawal.
In such cases, the interest paid will be lower by the Penalty rate (Penal Rate) from the rate prevailing on the date of placement of the deposit for the period for which the deposit remained with the Bank or the contractual rate, whichever is lower. No interest will be paid on premature withdrawals of deposit(s) which has remained with the Bank for less than the minimum period. This minimum period is the one that is pre-decided for each type of FD and communicated at the time of booking the FD.
Current penalty rate for premature withdrawal is 1%.

Q12. How can I change my existing FD’s account tenure?

Tenure selected for the fixed deposit account cannot be changed once the account is opened. You can close the existing fixed deposit account and open a new account with a desired tenure.

Q13. How is TDS deducted?

Type of Customers Tax Rate Surcharge Education Cess Total Taxes
Resident Individual & HUF 10% ---- ---- 10%
Corporate Entity 10% ---- ---- 10%
Firms 10% ---- ---- 10%
Co-operative Societies & Local Authority 10% ---- ---- 10%
Please note that, TDS rate has been reduced to 7.5% for the period 14th May 2020 to 31st March 2021.
 

Q14. Can TDS be recovered from principal of the FD?

If the interest amount is not sufficient to recover TDS, the amount is taken from the principal of the FD.
 

Q15. When does the Bank issue TDS Certificate?

The Bank provides the TDS certificate to you on quarterly basis or before the following dates:
Quarter Due Date
1st Quarter 15th August
2nd Quarter 15th November
3rd Quarter 15th February
4th Quarter 15th June of next Financial Year

Q16. Can TDS influence the maturity of my FD?

Yes, in case of reinvestment FDs, the interest reinvested is calculated post TDS recovery. Hence, the final maturity amount for reinvestment FDs would vary to the extent of tax and compounding effect on tax for the period subsequent of deduction till maturity.

Q17. Is PAN mandatory to book FD?

PAN number is mandatory for booking FDs of amount greater than or equal to Rs. 50,000.

Q18. What are the implications if I book an FD without PAN?

Following are the implications, if you book an FD without PAN:
  • TDS at a higher rate of 20% will be applied on resident FDs with interest income of Rs. 40,000/- (Rs. 50,000/- in case of Senior Citizen) or above during the Financial Year
  • No TDS credit from the Income Tax department
  • No TDS certificate will be issued (As per CBDT circular no:03/11)
  • Form 15G/H and other exemption certificates will be invalid

Q19. Will changes to my deposit portfolio affect my TDS liability?

Yes. If the change or enhancement in your deposit portfolio earns a cumulative interest of greater than Rs. 40,000/- (Rs. 50000/- in case of Senior Citizen) in a financial year along with that of the earlier portfolio, then you will be liable for TDS on your current portfolio.
Note: If interest on the current portfolio is not sufficient to cover TDS, then TDS will be recovered from the principal.

Q20. When is TDS deducted for a Regular FD?

TDS is deducted every time the Bank pays/reinvests interest during the Financial Year. In addition, TDS is also deducted on interest accrued (but not yet paid) at the end of Financial Year i.e. on 31st March.

Q21. If I am a senior citizen, what documents are required for me to open a senior citizen FD?

You need to provide proof of age establishing that you are a senior citizen. To accomplish this, either of the following documents can be submitted:
  • Valid Passport
  • PAN card
  • Voter’s Identity Card issued by the Election Commission of India
  • Valid Driving License
  • Job Card issued by NREGA duly signed by an officer of the State Government
  • Aadhar Card, issued by the Unique Identification Authority of India (UIDAI) containing details of name, address and aadhar number
  • E-aadhar downloaded from UIDAI website or E-KYC
  • Any other document as notified by the Central Government in consultation with the Reserve Bank of India
  • Identity Card with applicant’s photograph, signature & date of birth issued by Central/State Government departments, statutory/regulatory authorities, Public Sector Undertaking, Scheduled Commercial Banks and Public Finance Institutions

Q22. How can I prematurely liquidate an FD online through Net Banking or Mobile Banking?

Currently, we do not provide the facility to liquidate an FD online through Net Banking or Mobile Banking. You can do the same at any of the nearest branch of AU Small Finance Bank.

Q23. What is the minimum deposit amount required for opening an FD account?

The minimum deposit amount required for opening an FD account is Rs.1,000.

Q24. What is the multiple in which FD accounts can be opened?

The minimum amount required for opening an FD account is Rs.1,000. For amounts more than Rs.1,000, there is no fixed multiple.

Q25. What is the range of tenure for which FDs can be opened?

The range of tenure for opening an FD is as below:
  1. For domestic / NRO customers: From minimum 7 days to 10 years
  2. For NRE customers: From minimum 1 year to 10 years

Q26. At what frequency will I receive interest on my FD?

For pay-out FDs, the interest on the FD account is credited to the Savings Account specified by you on a monthly basis (for monthly pay-out FD) or on a quarterly basis (for quarterly pay-out FD). For reinvestment or Cumulative FD, the interest is compounded to the principal amount on a quarterly basis and pay-out to you is at maturity.

Q27. Is TDS deductible on the interest earned on Term Deposits?

For Fixed Deposits/ Recurring Deposits, TDS is not applicable on the interest earned up to Rs. 40,000 under Section 194A. However, TDS will be applicable if the interest received or likely to be received, during the financial year, exceeds Rs. 40,000. Further, in case of Senior Citizen, TDS will be applicable if the interest received or likely to be received, during the financial year, exceeds Rs. 50,000.
All customers other than a company, firm or non-resident, who do not have taxable income, can submit a self-declaration form in the prescribed Form 15G/15H for the purpose of availing TDS exemption under section 194A of the Income Tax Act in accordance with the provisions of section 197A.
A fresh Form 15G/15H is required to be submitted for each Financial Year. Form 15G/15H should be submitted at the time of creation of FD or beginning of Financial Year whichever is earlier. Further, fresh Form 15G/H needs to be submitted for all subsequent deposit(s) booked during the Financial Year.
Following are the limits for accepting Form 15G/ 15H. In case the limits are breached, Form 15G/ 15H will not be accepted.
Category Form Age Threshold Exemption Limit (Rs.)
Individual 15G Less than 60 years 2,50,000
Senior Citizen (Individual) 15H 60 years & above 5,00,000
Other than Individual (i.e. Trust, Association, Club, HUF and Society) 15G Not Applicable 2,50,000

Q28. What are the various ways to open an FD with AU Bank?

If you are an existing Savings or Current Account customer, you can book an FD by visiting the nearest branch of AU Small Finance Bank or by logging into your Net Banking or Mobile Banking account.

Q29. How do I get FD advices?

You can walk into any of the AU Small Finance Bank branches and get a copy of the FD advice. You can also call our Customer Care at 1800-1200-1200 and raise a request for FD Advice to be sent by post.
Advices for renewed FDs will be dispatched to you by post.

Q30. What are the multiples in which money can be withdrawn partially or prematurely from an FD account?

You can withdraw money from an FD account in multiples of Rs. 100/-.

Q31. Do senior citizens get any extra benefit on FDs?

Yes, senior citizens get additional interest rate benefit of 0.5%

Q32. What are the nomination facilities available on FDs?

The facility of nomination is available for relationships in the names of individuals for both single and joint account holders.

Q1. What is Sweep-in facility?

You can choose to link one or more Fixed Deposits to your Current or Savings Account. Any deficit in your Current or Savings Account can be funded through the linked Fixed Deposit(s). Deposits are broken down in units of Rs. 100/-, thereby minimising the interest loss.
In case of multiple linked Fixed Deposits, sweep-in of funds from Fixed Deposit(s) to your Current or Savings Account will trigger on Lowest Rate First Out basis. It means that the Fixed Deposit with the lowest interest rate will be broken first, thereby minimising interest loss for you.

Q2. What are the benefits of sweep-in facility?

You will get following benefits with the sweep-in facility
  1. Earn higher interest on your money until it is swept-in to your Current or Savings Account. The remaining deposit amount continues to earn higher interest.
  2. Multiple FDs can be linked to your Current or Savings Account.
  3. Any deficit in your Current or Savings Account can be automatically immediately funded, without any delay or inconvenience to you.

Q3. Can accounts held in different titles be linked for the sweep-in facility?

No. You can only link the sweep-in facility to the accounts with the same account title. For example, a Fixed Deposit held by A-B can only be linked to a Current or Savings Account held by A-B across the branches of AU Small Finance Bank.

Q4. Will both the principal and interest amount of my Fixed Deposit(s) be considered for sweep-in?

No. Only the principal amount of your Fixed Deposit(s) will be considered for the sweep-in facility.

Q5. Can a Fixed Deposit be linked to two different Savings Accounts for the sweep-in?

No. You can link a Fixed Deposit to only one of your Savings Account for the sweep-in facility.

Q1. What is a Recurring Deposit (RD)?

Recurring Deposit (RD) is a special kind of Term Deposit, in which Savings Account customers can deposit a fixed amount every month into their RD account and earn interest. This deposit allows you to choose a term and the amount you wish to invest every month to earn returns at the applicable interest rates.

Q2. How does RD work?

RD works in the following way:
  1. You need to choose the tenure (total time period of RD) and the amount you wish to invest every month for booking an RD.
  2. A monthly deposit of the chosen amount is made in the RD account every month till the end of the tenure.
On maturity, you will get back the amount you deposited, along with the interest calculated at the rate applicable at the time of opening your account.

Q3. Is it mandatory to also have a Savings account with the Bank in order to open an RD?

Yes, Savings account with the Bank is mandatory to open an RD.

Q4. How much can I invest each month and for what tenure?

You can open an RD with a minimum amount of Rs. 100/- per month and for tenures starting from 3 months to 10 years.

Q5. Are there any extra benefits for senior citizens?

Yes, senior citizen customers get an additional 0.50% rate of interest (per annum) over and above the interest payable to regular customers.

Q6. Is there any TDS on RD?

Yes. TDS on RD is deducted as per the income tax guidelines under Section 194A w.e.f. 01st June 2015.

Q7. Can the first applicant for an RD be a minor?

Yes. TDS on RD is deducted as per the income tax guidelines under Section 194A w.e.f. 01st June 2015.

Q8. Can RD(s) be opened in joint names?

Yes, you can open RD(s) in joint names.

Q9. Can I do a premature withdrawal of my RD?

Yes, premature withdrawals are allowed, but partial withdrawals are not permitted.

Q10. How can I prematurely liquidate my RD?

You will need to submit the RD advice or written instruction, duly signed by all the account holders, at any branch of AU Small Finance Bank for premature liquidation of the RD.

Q11. What is the premature withdrawal penalty for RD?

Current penalty rate for premature withdrawal of RD is 1%.

Q12. Is there a monthly or quarterly interest pay-out option?

No. The interest will be paid on maturity or on premature closure of the RD.

Q13. Can I close my RD online through Net Banking or Mobile Banking?

No. You cannot close your RD online through Net Banking or Mobile Banking. For closing the RD, you need to visit any of the nearest branch of AU Small Finance Bank.

Q14. Is an overdraft facility allowed?

Currently there is no overdraft facility available on Recurring Deposits.

Q15. Is PAN mandatory to book RD?

As per Rule 114B of Income Tax Rules read with section 139A of Income Tax Act, you are required to quote a valid PAN for the purpose of creating Recurring Deposit(s) of more than Rs. 50,000 in a single day or if the aggregate amount (for all the FDs & RDs created in a financial year) exceeds Rs. 5,00,000 during the financial year. In case, you have not submitted a valid PAN, then you are required to furnish the declaration in Form 60.

Q16. If I book an RD today, when will be the next Standing Instruction (SI) processed from my account?

SI will be processed from your account every month on the same date on which you have booked the RD.

Q17. Is there a nomination facility?

Yes, there is a nomination facility on the Recurring Deposit account.

Q18. Can I change the tenure and instalment due date (auto debit date) of my RD?

No, it is not possible to change the tenure and instalment due date (auto debit date). You can open a new RD with the desired due date and tenure.

Q19. What if certain RD instalments are not paid?

If three consecutive instalments are unpaid, the Bank reserves the right to close the RD account. The interest rate applicable on such closed accounts will be as per the premature RD withdrawal policy of the Bank.

Q20. Can I pay more than one instalment at a time?

You can, but note that there will be no interest paid on any additional amount deposited, other than the due instalment.