Unity SFB Offers 8.50% Interest On 501-Day FDs

Unity Small Finance Bank is offering an interest rate of 8.50 percent per annum on fixed deposits maturing in 501 days, specifically for senior citizens. This rate applies to retail deposits below Rs 3 crore.

The bank's revised retail fixed deposit rates have been effective from July 15, 2026. Regular depositors can earn an interest rate of 8 percent on the same 501-day tenure.

The highest retail rate of 8.50 percent is available to resident senior citizens choosing the 501-day tenure. Senior citizen rates do not apply to non-resident customers. Unity SFB employees are eligible for an additional 1 percent over the card rate.

For a 12-month deposit, the bank offers 7.50 percent to general customers and 8 percent to senior citizens. Deposits running from 502 days to 18 months offer 6.75 percent to regular customers and 7.25 percent to seniors.

Fixed deposits exceeding 18 months and extending up to five years carry 6.75 percent for general customers and 7.25 percent for senior citizens. For deposits exceeding five years and extending up to 10 years, the rates fall to 6 percent and 6.50 percent, respectively.

Shorter deposits carry rates ranging from 4 percent to 6.75 percent, depending on tenure and customer category. Customers closing fixed or recurring deposits before maturity will face a 1 percent penalty.

Interest will be calculated according to the period for which the money remained with the bank. NRE term deposits can be opened for at least one year, and no interest will be paid if an NRE deposit is withdrawn before completing one year.

Tax deducted at source is not applicable to NRE deposits. Unity SFB separately offers 4.50 percent on savings balances up to Rs 1 lakh, 6 percent on balances above Rs 1 lakh and up to Rs 5 lakh, and 7 percent on balances exceeding Rs 5 lakh.

The bank said interest rates may change without prior notice and advised customers to contact its branches for detailed terms and conditions.

This move by Unity SFB is significant for senior citizens and regular depositors looking for higher returns on their fixed deposits. The bank's competitive interest rates make it an attractive option for those seeking to grow their savings.

In the current financial landscape, fixed deposits remain a popular investment option for those seeking low-risk and stable returns. Unity SFB's offer is likely to appeal to a wide range of customers, particularly senior citizens who can benefit from the higher interest rate on the 501-day tenure.

The bank's decision to offer competitive interest rates is also a reflection of the ongoing competition in the banking sector, where lenders are constantly looking to attract new customers and retain existing ones.

As the banking landscape continues to evolve, customers can expect to see more innovative products and competitive interest rates from lenders like Unity SFB.

In conclusion, Unity SFB's offer of 8.50 percent interest on 501-day fixed deposits for senior citizens is a significant development in the banking sector, and one that is likely to appeal to a wide range of customers.

The bank's competitive interest rates and range of deposit options make it an attractive option for those seeking to grow their savings and achieve their financial goals.

With its revised retail fixed deposit rates, Unity SFB is well-positioned to meet the evolving needs of its customers and stay ahead in the competitive banking landscape.