Unity Small Finance Bank hikes 501-day FD rate to 8%; senior citizens to earn up to 8.5%

Unity Small Finance Bank has revised its fixed deposit (FD) interest rates, offering up to 8.5% per annum for senior citizens and 8% for general customers on its special 501-day deposit scheme. The revised rates, effective July 15, 2026, apply to deposits below ₹3 crore.

With the latest revision effective July 15, 2026, general customers will earn 8% per annum, while senior citizens will receive 8.5% per annum on deposits with a tenure of 501 days. The revised rates are applicable on deposits of less than ₹3 crore.

The move comes at a time when several small finance banks are competing aggressively for deposits by offering higher returns than most public and private sector banks.

Apart from the special tenure, Unity Bank continues to offer 7.5% on one-year deposits for general customers and 8% for senior citizens. Deposits with maturities ranging from over three years to five years earn 6.75% for general customers and 7.25% for senior citizens.

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Unity Small Finance Bank's key FD rates 

Tenure	General Citizens (p.a.)	Senior Citizens (p.a.)
12 Months	7.50%	8.00%
501 Days	8.00%	8.50%
502 Days – 18 Months	6.75%	7.25%
Above 36 Months – 60 Months	6.75%	7.25%
Above 60 Months – 120 Months	6.00%	6.50%

Unity Small Finance Bank's Savings Account rates

Savings Account Balance	Interest Rate (p.a.)
Above ₹1 lakh and up to ₹10 lakh	6.00%
Above ₹10 lakh	7.00%

In addition to fixed deposits, Unity Bank also offers attractive returns on savings accounts. Deposits above ₹10 lakh earn 7% per annum, while balances above ₹1 lakh and up to ₹10 lakh receive 6% per annum.

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How Unity compares with other small finance banks

Several small finance banks have revised their deposit rates over the past month, although most reserve their highest rates for specific tenures.

Bank	Highest General FD Rate	Highest Senior Citizen Rate	Special Tenure
Unity SFB	8.00%	8.50%	501 Days
Jana SFB	8.00%	8.30%	More than 2 to 3 years
Equitas SFB	8.00%	8.50%	3 Years 1 Day
ESAF SFB	7.75%	8.25%	2 to less than 3 years
Ujjivan SFB	7.80%	8.30%*	2 Years

*Senior citizen rate includes the additional 0.50% benefit where applicable.

*Senior citizen rate includes the additional 0.50% benefit where applicable.

Among peers, Unity's 8.5% rate for senior citizens matches the highest rates currently available from Equitas Small Finance Bank, while its 8% rate for general customers is also among the top offerings in the segment. 

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Highest FD rates offered by select small finance banks

Bank	Highest General FD Rate	Highest Senior Citizen FD Rate	Special Tenure
Unity Small Finance Bank	8.00%	8.50%	501 Days
Jana Small Finance Bank	8.00%	8.30%	More than 2 years to 3 years
Equitas Small Finance Bank	8.00%	8.50%	3 Years 1 Day
ESAF Small Finance Bank	7.75%	8.25%	2 years to less than 3 years
Ujjivan Small Finance Bank	7.80%	8.30%*	2 Years
AU Small Finance Bank	7.40%	7.90%*	30 Months to 36 Months
Capital Small Finance Bank	7.25%	7.75%	600/900 Days

Other lenders also revised rates

The latest revision follows a series of changes across the deposit market.

Shriram Finance revised its deposit rates effective July 2, 2026, offering up to 7.5% on cumulative fixed deposits with tenures between 36 months and 60 months. The same maximum rate is available to eligible NRI depositors.

Banks have increasingly been launching special-tenure deposits to attract retail savings, especially after policy rates stabilized. For depositors seeking higher returns, special tenure FDs offered by small finance banks continue to provide yields that are significantly above those available from many large commercial banks.

However, investors should evaluate not only the interest rate but also factors such as deposit insurance limits, liquidity needs and the bank's terms before locking money into long-tenure fixed deposits.

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