AU Small Finance Bank (AU SFB) has introduced Planet First – AU Green Fixed Deposit, which is purposefully designed to allocate its entire proceeds to support renewable and green projects such as solar power and electric mobility solutions, according to the bank’s press release. Green Fixed Deposits will enable customers to contribute to sustainability of planet through AU’s green offering.
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Planet First – AU Green Fixed Deposit
With a minimum deposit of Rs 5,000, the AU Green Fixed Deposit offers an appealing interest rate of up to 8.50 percent. This innovative service enables both existing and new AU SFB clients to secure their Green FDs quickly via Video Banking, the AU 0101 App, NetBanking, or by simply visiting their nearest AU Small Finance Bank location. The Green FD will be launched on the last Wednesday of October, which is also Sustainability Day.
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Interest payment choices
According to the AU SFB press release, “The customers can opt for a tenure that aligns with their financial objectives, spanning from shortest term of two years to long-term options. Planet First – AU Green Fixed Deposit offer a variety of interest payment choices to customers, including monthly, quarterly, and cumulative (at maturity), to help manage their cash flows effectively. Furthermore, customers will receive regular updates regarding the utilization of their funds and the progress of the green projects supported by Planet First – AU Green Fixed Deposit, keeping them well-informed every step of the way.”
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What is Green Deposit
“Green deposit” means an interest-bearing deposit, received by the RE for a fixed period and the proceeds of which are earmarked for being allocated towards green finance. According to the RBI notification, “REs shall issue green deposits as cumulative/non-cumulative deposits. On maturity, the green deposits would be renewed or withdrawn at the option of the depositor. The green deposits shall be denominated in Indian Rupees only.”
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AU SFB FD rates
AU Small Finance Bank offers interest rates between 3.75% to 8% for general citizens for tenure ranging from 7 days to 10 years. For senior citizens, the bank offers between 4.25% to 8.50%. The highest interest rate of 8.50% is offered on tenure of 24 months 1 day to 36 months.
