Savings account holders usually earn limited interest on their deposits, but some banks are now offering higher returns to attract customers.
Unity Small Finance Bank has revised its savings account interest rates, allowing customers to earn up to 7% annual interest on their account balance.
The new rates became effective from August 1, 2026.
Customers who maintain the required balance can now earn better returns on their savings while keeping their money easily accessible.
Unity Small Finance Bank Savings Account Interest Rates
The bank has updated interest rates for different balance slabs. The new rates are:
Balance up to ₹1 lakh: 4.5% per annum
Balance above ₹1 lakh and up to ₹5 lakh: 6% per annum
Balance above ₹5 lakh: 7% per annum
However, customers should understand that the highest interest rate is not applied to the entire balance.
For example, if you have ₹6 lakh in your savings account:
The first ₹1 lakh will earn interest at 4.5%
The next ₹4 lakh will earn interest at 6%
The remaining ₹1 lakh will earn interest at 7%
The interest is calculated separately for each balance slab.
Your Deposits Are Protected Under RBI Rules
Unity Small Finance Bank is regulated by the Reserve Bank of India (RBI).
Deposits up to ₹5 lakh per depositor are insured under the Deposit Insurance and Credit Guarantee Corporation (DICGC) scheme.
This provides protection to customers in case of any bank-related issues.
Small Finance Banks Are Also Offering Attractive FD Rates
Apart from savings accounts, Small Finance Banks are also offering competitive Fixed Deposit (FD) interest rates.
Unity Small Finance Bank is offering:
8.50% annual interest for senior citizens on its 501-day special FD scheme
8% annual interest for regular customers for the same period
Other Small Finance Banks are also offering attractive FD returns:
Utkarsh Small Finance Bank: 8.10% for regular citizens and 8.25% for senior citizens on a 666-day FD
Ujjivan Small Finance Bank: 7.20% for regular citizens and 8.30% for senior citizens on a 2-year FD
Should You Choose a High-Interest Savings Account?
A higher-interest savings account can help customers earn better returns on idle money without locking funds for a fixed period.
However, before opening an account, customers should compare interest rates, minimum balance requirements, banking facilities, and deposit safety features to choose the right option.