If you’re planning to invest in a fixed deposit (FD), this could be a good time to explore your options.
Unity Small Finance Bank has revised its FD interest rates, with the new rates coming into effect from July 15.
The bank is now offering up to 8.50% annual interest on its special 501-day FD, making it one of the most attractive FD options for retail customers investing less than Rs 3 crore.
Highest Returns on 501-Day Fixed Deposit
The special 501-day FD offers the highest interest rate announced by the bank.
General customers will earn 8% annual interest.
Senior citizens will receive 8.50% annual interest.
Apart from this, the bank is also offering attractive returns on one-year FDs.
12-month FD: 7.50% for general customers and 8% for senior citizens.
FDs from 501 days to 5 years: 6.75% for general customers and 7.25% for senior citizens.
Interest Rates on Short-Term FDs
The bank has also announced revised rates for short-term fixed deposits.
7 to 45 days: 4% interest
46 to 60 days: 4.75% for general customers and 5.25% for senior citizens
61 to 164 days: 5% for general customers and 5.50% for senior citizens
165 days to 6 months: 5.50% for general customers and 6% for senior citizens
6 months to 364 days: 6.25% for general customers and 6.75% for senior citizens
More than 12 months to 500 days: 6.50% for general customers and 7% for senior citizens
For long-term investors, FDs with a tenure of more than 5 years and up to 10 years offer 6% interest for general customers and 6.50% for senior citizens.
Savings Account Rates Remain Unchanged
While the bank has revised its FD rates, there has been no change in savings account interest rates.
The current savings account interest rates are:
4.50% on balances up to Rs 1 lakh
6% on balances between Rs 1 lakh and Rs 10 lakh
7% on balances above Rs 10 lakh
Keep This Rule in Mind Before Investing
The bank has also reminded customers about its premature withdrawal policy.
If you withdraw your Fixed Deposit (FD) or Recurring Deposit (RD) before maturity, the bank will charge a 1% penalty on the applicable interest.
So, investors should choose the FD tenure carefully before investing to avoid any loss due to early withdrawal.
