If you’re planning to invest in a fixed deposit (FD), this could be the right time to check the latest interest rates.
Unity Small Finance Bank has revised its FD interest rates, with the new rates coming into effect from July 15.
The bank is now offering up to 8.50% annual interest on its special 501-day FD, making it one of the most attractive options for retail investors with deposits below Rs 3 crore.
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501-Day FD Offers the Highest Returns
The bank’s special 501-day fixed deposit offers its highest interest rate.
General customers: 8% per year
Senior citizens: 8.50% per year
Apart from this, the bank is also offering attractive returns on other FD tenures.
For a 12-month FD, general customers will earn 7.50%, while senior citizens will receive 8% annual interest.
For FDs with a tenure of more than 501 days and up to 5 years, the interest rates are:
General customers: 6.75%
Senior citizens: 7.25%
Interest Rates on Short-Term FDs
Customers looking for short-term investments can also benefit from revised rates.
7 to 45 days: 4% for general customers
46 to 60 days: 4.75% for general customers and 5.25% for senior citizens
61 to 164 days: 5% for general customers and 5.50% for senior citizens
165 days to 6 months: 5.50% for general customers and 6% for senior citizens
6 months to 364 days: 6.25% for general customers and 6.75% for senior citizens
12 months to 500 days: 6.50% for general customers and 7% for senior citizens
For FDs with a tenure of more than 5 years and up to 10 years, the bank is offering:
General customers: 6%
Senior citizens: 6.50%
Savings Account Interest Rates Remain Unchanged
While the FD rates have been revised, the bank has not changed its savings account interest rates.
The current annual interest rates are:
Up to Rs 1 lakh: 4.50%
Rs 1 lakh to Rs 10 lakh: 6%
Above Rs 10 lakh: 7%
Premature Withdrawal Will Attract a Penalty
The bank has also reminded customers that withdrawing money before the FD or recurring deposit (RD) matures will be costly.
If an FD or RD is closed before maturity, the bank will charge a 1% penalty on the applicable interest amount.
Therefore, investors should choose the FD tenure carefully before investing.