Unity Small Finance Bank announced a hike in fixed deposit interest rates on Wednesday (July 15, 2026) for deposits with a 501-day maturity period. According to reports from The Economic Times, the revision applies specifically to deposits below ₹3 crore. Senior citizens will now receive an attractive 8.50% per annum interest rate for deposits in this tenure, while general customers will earn 8.00% per annum for the same duration. The revised rates came into effect on July 15, making the 501-day deposit the highest interest rate in the bank's retail fixed deposit portfolio for deposits of less than ₹3 crore.
The updated rate structure shows significant differences between general and senior citizen rates across various tenures. For shorter tenures ranging from 7-14 days to 6-90 days, both categories receive identical rates of 4.00%-5.50% per annum. The 501-day tenure offers the most substantial difference, with senior citizens earning 0.50% more than general customers. The bank also offers competitive rates for longer-term deposits, with 12-month deposits providing 7.00% per annum for general customers and 8.00% per annum for senior citizens. Most deposits with maturities ranging from 502 days to five years carry interest rates of 6.75% for general customers and 7.25% for senior citizens.
Beyond fixed deposits, Unity Bank continues to offer competitive rates on savings accounts. The bank provides 4.50% per annum interest on balances up to ₹1 lakh, 6.00% per annum for balances from ₹1 lakh to ₹10 lakh, and 7.00% per annum for balances exceeding ₹10 lakh. These rates remain unchanged following the FD rate revision, as reported by The Economic Times.
The bank has implemented a 1 percentage point penalty on applicable interest rates for premature withdrawal of fixed deposits and recurring deposits for the period the deposit remained with the bank. Unity Small Finance Bank is a scheduled commercial bank promoted by Centrum Financial Services, a subsidiary of Centrum Capital, with Resilient Innovations as a joint investor. The bank has not announced any changes to its savings account interest rates, maintaining the current competitive structure across all deposit products.
