AU Small Finance Bank (SFB), India’s largest Small Finance Bank (SFB), has announced an increase in interest rates on term deposits and savings accounts from 12 December.

According to a press release, the bank has raised the maximum FD rate on retail deposits by 25 basis points to 7.75% for regular customers from the existing 7.5% and 8.25% for senior citizens from 8%. The bank had hiked the FD rate on retail deposits by up to 60 basis points in October 2022.

AU Small Finance Bank has also raised the savings deposit rate to 7.25% per annum for savings accounts with balances between Rs 1 crore and Rs 10 crore.

AU Small Finance Bank Executive Director Uttam Tibrewal commented on the rate hike: “Following the recent series of repo rate hikes announced by RBI, we have increased FD and savings rates to maximise the benefits of our customers.”