AU Small Finance Bank has revised its savings account interest rate to 6.75% per annum [1].
This move allows the bank to attract more deposits in a competitive financial landscape while providing higher returns for its customers. By increasing the yield on liquid savings, the institution aims to strengthen its position against other small finance banks and traditional lenders in India [1], [3].
The new rate is effective immediately across the bank's operations [2], [3]. The bank said the decision was made to reinforce its commitment to customer value and maintain a competitive edge in the market [1], [3].
This adjustment follows previous moves to enhance its deposit products. The bank also raised its fixed deposit rates to as much as 7.75%, which became effective on April 23, 2026 [4].
By offering a tiered approach to interest, combining the immediate 6.75% rate for savings accounts with higher yields for long-term fixed deposits, the bank is targeting a broader range of savers. The shift reflects a broader trend in the Indian banking sector where small finance banks often offer higher rates than larger commercial banks to grow their asset base [1].
Customers can access these revised rates through the bank's branches and digital platforms. The institution has not announced further changes to its monetary products for the current quarter [1], [2].
“AU Small Finance Bank has revised its savings account interest rate to 6.75% per annum.”
This rate hike indicates a strategic push by AU Small Finance Bank to aggressively grow its low-cost deposit base. In the Indian banking sector, small finance banks use higher interest rates as a primary tool to compete with larger legacy banks, signaling a period of intense competition for retail liquidity.
