Fixed Deposits (FDs) remain one of the most popular investment options for people looking for safe and stable returns.
At a time when stock markets are witnessing ups and downs, many investors prefer FDs to protect their savings while earning guaranteed interest.
Now, there is good news for FD investors. Two leading small finance banks — Unity Small Finance Bank
and AU Small Finance Bank — have increased interest rates on select FD tenures, allowing customers to earn higher returns on their deposits.
Contents
Unity Bank Increases Interest on Popular 501-Day FD
Unity Small Finance Bank has revised the interest rate on its popular 501-day FD scheme with effect from June 11, 2026.
Under the revised rates, general customers will earn 7.80% annual interest, while senior citizens will receive 8.30% per year on this tenure.
Compared to many large public and private sector banks, these rates are quite attractive and may appeal to investors looking for better returns without taking additional risk.
Savings Account Also Offers Attractive Returns
Apart from FDs, Unity Bank is also offering high interest rates on savings account deposits.
7% annual interest on balances above ₹10 lakh
6% annual interest on balances between ₹1 lakh and ₹10 lakh
This makes the bank a good option for customers who prefer keeping funds in a savings account while earning higher interest.
Key Unity Bank FD Rates
| Tenure | General Citizens | Senior Citizens |
|---|---|---|
| 12 Months | 7.50% | 8.00% |
| 501 Days | 7.80% | 8.30% |
| 502 Days to 5 Years | 6.75% | 7.25% |
| 5 Years to 10 Years | 6.00% | 6.50% |
AU Small Finance Bank Also Raises FD Rates
AU Small Finance Bank has also revised its FD interest rates.
The bank has increased the interest rate on its 30-month FD from 7.25% to 7.40% for regular customers. For senior citizens, the rate has been raised from 7.75% to 7.90%.
The revised rates came into effect on June 10, 2026.
According to the bank’s latest rate chart, the highest FD interest is currently available for deposits with a tenure of 30 months and 1 day to 36 months.
This could benefit investors looking for medium-term investment options with better returns.
Key AU Small Finance Bank FD Rates
| Tenure | Interest Rate |
|---|---|
| 6 Months 1 Day to 12 Months | 6.35% |
| 12 Months 1 Day to 15 Months | 7.10% |
| 24 Months 1 Day to 30 Months | 7.10% |
| 30 Months 1 Day to 36 Months | 7.40% |
| 36 Months 1 Day to 45 Months | 7.00% |
| 60 Months to 120 Months | 6.75% |
What Investors Should Keep in Mind
Banking experts say many banks have been revising FD rates in recent months to attract deposits.
Before investing, customers should compare FD rates across different banks and check factors such as tenure, premature withdrawal rules, and bank credibility.
Senior citizens should pay special attention to FD schemes because most banks offer additional interest, which can significantly increase overall returns.
A Good Opportunity for Safe Investors
The latest FD rate hikes by Unity Small Finance Bank and AU Small Finance Bank could be a great opportunity for investors seeking higher returns without taking market-related risks.
If you are planning to open an FD in the coming months, it may be worth comparing these new rates before making your investment decision.