Fixed Deposits (FDs) remain one of the most trusted investment options in India. They offer stable returns and lower risk compared to the stock market.
Now, FD investors have another reason to celebrate. Two leading small finance banks — Unity Small Finance Bank and AU Small Finance Bank — have increased interest rates on select FD tenures. This means investors can now earn higher returns on their savings.
Unity Small Finance Bank Raises Interest on Popular 501-Day FD
Unity Small Finance Bank has revised the interest rate on its popular 501-day FD scheme from June 11, 2026.
Under the new rates, regular customers will earn 7.80% annual interest, while senior citizens will get an attractive 8.30% annual return.
The bank’s 501-day FD is now among the higher-paying FD options available in the market, making it attractive for investors looking for better returns without taking high risks.
Attractive Savings Account Interest Too
Unity Bank is not only offering higher FD returns but also competitive savings account interest rates.
According to the bank:
Deposits above ₹10 lakh earn 7% annual interest.
Deposits between ₹1 lakh and ₹10 lakh earn 6% annual interest.
This makes the bank a good option for customers who prefer keeping money in savings accounts as well.
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 Revises FD Rates
AU Small Finance Bank has also increased FD interest rates for select tenures.
The bank has raised the interest rate on its 30-month FD from 7.25% to 7.40%.
For senior citizens, the rate has increased from 7.75% to 7.90%.
The revised rates came into effect on June 10, 2026.
Highest Interest on Medium-Term FDs
AU Small Finance Bank is currently offering its highest FD interest rate on deposits with a tenure of 30 months 1 day to 36 months.
This can be a good option for investors who want a safe investment for the medium term while earning higher returns.
Important 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% |
Compare FD Rates Before Investing
Banking experts say many banks have been revising FD rates in recent months to attract more deposits.
Before investing, customers should compare FD rates offered by different banks. This is especially important for senior citizens, as many banks provide additional interest that can significantly boost overall earnings.
Should You Invest?
The latest FD rate hikes by Unity Small Finance Bank and AU Small Finance Bank offer a good opportunity for investors looking for safe and stable returns.
If you are planning to open an FD in the coming months, it may be worth checking the latest rates offered by these two banks before making a decision.
