Keeping money in a savings account usually earns limited returns, but some banks are now offering higher interest rates to attract customers.
Unity Small Finance Bank has revised its savings account interest rates, offering customers a maximum return of 7% per year.
The new rates came into effect from August 1, 2026.
Customers maintaining the required balance in their accounts can now earn higher returns on their savings.
Unity Small Finance Bank Savings Account Interest Rates
The bank has changed the interest rates for different balance slabs.
The applicable rates are:
Balance up to ₹1 lakh: 4.5% annual interest
Balance above ₹1 lakh and up to ₹5 lakh: 6% annual interest
Balance above ₹5 lakh: 7% annual interest
However, customers should note that the highest interest rate is not applied to the entire account balance.
For example, if a customer has ₹6 lakh in the account:
The first ₹1 lakh will earn 4.5% interest
The next ₹4 lakh will earn 6% interest
The remaining ₹1 lakh will earn 7% interest
This means the interest is calculated according to different balance slabs.
Deposits Up to ₹5 Lakh Are Insured
Unity Small Finance Bank is regulated by the Reserve Bank of India (RBI).
Deposits of up to ₹5 lakh per depositor are protected under the Deposit Insurance and Credit Guarantee Corporation (DICGC) insurance system.
This provides additional security to customers keeping their money with the bank.
Unity Bank and Other Small Finance Banks Offer Attractive FD Rates
Apart from savings accounts, several Small Finance Banks are also offering attractive interest rates on Fixed Deposits (FDs).
Unity Small Finance Bank is offering:
8.50% annual interest for senior citizens on its 501-day special FD scheme
8% annual interest for regular investors for the same period
Other banks are also offering competitive FD returns:
Utkarsh Small Finance Bank: Up to 8.10% for regular citizens and 8.25% for senior citizens on a 666-day FD
Ujjivan Small Finance Bank: 7.20% for regular citizens and 8.30% for senior citizens on a 2-year FD
Should You Consider High-Interest Savings Accounts?
Higher savings account interest rates can help customers earn better returns on idle money while keeping funds easily accessible.
However, before opening an account, customers should compare interest rates, minimum balance requirements, banking services, and safety features to choose the option that best suits their needs.
