Investors looking for higher returns on fixed deposits have something to cheer about.
Unity Small Finance Bank has increased interest rates on its special 501-day Fixed Deposit (FD) scheme, offering attractive returns to both regular and senior citizen customers.
With the latest revision, senior citizens can now earn up to 8.3% interest per annum, while general investors can get up to 7.8% on the special FD scheme.
The revised rates came into effect from June 11, 2026.
501-Day FD Offers the Highest Return
The bank’s special 501-day FD has now become its highest-paying retail fixed deposit product.
Under the revised structure, general customers will earn 7.8% annual interest, while senior citizens will receive 8.3%.
At a time when many investors are searching for safe investment options with stable returns, the scheme could attract significant interest from depositors.
Interest Rates on Other FD Tenures
Apart from the special 501-day deposit, Unity Small Finance Bank is also offering competitive returns on other FD tenures.
For one-year fixed deposits, the bank offers 7.5% interest to general customers and 8% to senior citizens.
Meanwhile, deposits with tenures ranging from 502 days to 60 months will earn 6.75% for regular investors and 7.25% for senior citizens.
The revised rates are aimed at helping customers take advantage of the current high-interest-rate environment.
Savings Account Customers Also Benefit
The bank is not only offering attractive FD rates but also competitive interest on savings accounts.
Customers maintaining balances above ₹10 lakh can earn 7% interest annually.
For balances between ₹1 lakh and ₹10 lakh, the interest rate stands at 6% per year.
Savings account balances of up to ₹1 lakh will continue to earn 4.5% interest annually.
Why Has the Bank Increased Rates?
Banks across the country have been adjusting deposit rates to attract more customer funds as interest rates remain elevated.
Unity Small Finance Bank says the revised rates are designed to help customers maximize returns while also strengthening the bank’s deposit base.
The lender operates across consumer banking, business banking, digital banking, commercial banking, and treasury services.
Important Rule Before Investing
Investors should keep one important condition in mind before booking an FD.
The bank has stated that premature withdrawal of fixed deposits or recurring deposits will attract a penalty of 1 percentage point on the applicable interest rate for the period the money remained with the bank.
This means customers may earn lower returns if they choose to break their deposit before maturity.
Is the 501-Day FD Worth Considering?
For investors seeking higher returns without taking market-related risks, the 501-day FD could be an attractive option, especially for senior citizens who can earn up to 8.3% annually.
However, before investing, customers should compare rates across banks and ensure they are comfortable keeping their money locked in for the full tenure to avoid premature withdrawal penalties.
