Fixed deposit investors have received some good news.
Unity Small Finance Bank has increased interest rates on its special 501-day Fixed Deposit (FD) scheme, offering higher returns to both regular investors and senior citizens.
With the latest revision, senior citizens can earn up to 8.3% interest per year, while general customers can get returns of up to 7.8%. The new rates came into effect on June 11, 2026.
The move comes at a time when many banks are trying to attract deposits by offering attractive returns in the current high-interest-rate environment.
Special 501-Day FD Offers the Highest Return
The bank’s special 501-day FD has become its highest-paying retail fixed deposit product.
Under the revised rates, general investors will receive 7.8% annual interest, while senior citizens will earn 8.3%.
For investors looking for stable and predictable returns, the scheme could be an attractive option compared to many traditional savings products.
Other FD Interest Rates Offered by the Bank
Apart from the special FD scheme, Unity Small Finance Bank has also announced competitive rates across different deposit tenures.
For one-year fixed deposits, the bank offers:
7.5% interest for general customers
8% interest for senior citizens
For deposits with tenures ranging from 502 days to 60 months, the interest rates are:
6.75% for general investors
7.25% for senior citizens
These rates are designed to give customers multiple investment options based on their financial goals and preferred investment period.
Attractive Returns on Savings Accounts Too
The bank is not only offering higher FD rates but also competitive interest rates on savings accounts.
Customers maintaining balances above ₹10 lakh can earn 7% interest annually.
Balances between ₹1 lakh and ₹10 lakh earn 6% interest, while deposits up to ₹1 lakh continue to earn 4.5% per year.
These rates are significantly higher than what many traditional banks currently offer on savings accounts.
Why Has the Bank Increased Rates?
According to the bank, the revised rates are intended to help customers benefit from the current interest-rate cycle.
At the same time, the move is expected to strengthen the bank’s deposit base by attracting more savers looking for higher returns on their money.
Unity Small Finance Bank is backed by Centrum Financial Services Ltd and Resilient Innovations Pvt Ltd and operates across consumer banking, business banking, digital banking, commercial banking, and treasury services.
Important Rule Investors Should Know
Before investing, customers should be aware of the bank’s premature withdrawal policy.
The bank has stated that if a fixed deposit or recurring deposit is withdrawn before maturity, a penalty of 1 percentage point will be charged on the applicable interest rate for the period the deposit remained with the bank.
Therefore, investors should carefully choose a tenure that matches their financial needs and liquidity requirements.
Is This FD Worth Considering?
With returns of up to 8.3% for senior citizens and 7.8% for general investors, Unity Small Finance Bank’s 501-day FD currently stands out among many fixed deposit offerings in the market.
For investors seeking higher guaranteed returns without taking market risk, the scheme could be worth exploring, especially while interest rates remain elevated.
