Unity Small Finance Bank (SFB) has announced a significant revision to its fixed deposit (FD) interest rates, making its special 501-day deposit scheme particularly attractive. Effective July 15, 2026, senior citizens can now earn an impressive 8.5% per annum on these deposits, while general customers will receive 8%.
New Rates for Special 501-Day FD
The updated interest rates apply to fixed deposits below ₹3 crore. This move positions Unity SFB competitively within the small finance banking sector, which has been actively adjusting rates to attract retail deposits.
Beyond the special 501-day tenure, Unity Bank also offers varied rates across other deposit periods:
- 12 Months: 7.50% for general customers, 8.00% for senior citizens.
- Above 36 Months – 60 Months: 6.75% for general customers, 7.25% for senior citizens.
Attractive Savings Account Options
In addition to its competitive FD rates, Unity Bank provides compelling returns on its savings accounts:
- Balances above ₹10 lakh earn 7% per annum.
- Balances between ₹1 lakh and ₹10 lakh receive 6% per annum.
Comparison with Other Small Finance Banks
Unity SFB’s revised rates place it among the top contenders in the small finance banking segment. Several other SFBs have also adjusted their deposit rates recently, with many reserving their highest offerings for specific tenures.
For instance, Equitas Small Finance Bank also offers up to 8.5% for senior citizens on a 3-year, 1-day FD, matching Unity's highest offering. Jana Small Finance Bank provides up to 8.30% for seniors on tenures between 2 and 3 years.
This competitive environment benefits depositors seeking higher returns, especially as policy rates stabilize. While small finance banks generally offer higher yields than many larger public and private sector banks, investors are advised to consider factors beyond just interest rates, such as deposit insurance limits, liquidity needs, and the bank's overall terms, before committing to long-term fixed deposits.