Unity Small Finance Bank has revised its savings account interest rates, offering customers the chance to earn up to 7% annual interest. The new rates came into effect on August 1, 2026.
Customers who maintain higher account balances can now earn better returns on their savings.
New Savings Account Interest Rates
The bank has introduced different interest rates based on the balance maintained in the account.
Up to ₹1 lakh: 4.5% per year
Above ₹1 lakh and up to ₹5 lakh: 6% per year
Above ₹5 lakh: 7% per year
How Interest Is Calculated
The higher interest rate is not applied to the entire account balance. Instead, the bank uses a slab-based calculation.
For example, if your savings account balance is ₹6 lakh:
The first ₹1 lakh earns 4.5% interest.
The next ₹4 lakh earns 6% interest.
The remaining ₹1 lakh earns 7% interest.
This means different portions of your balance earn different interest rates.
Since Unity Small Finance Bank is regulated by the RBI, deposits of up to ₹5 lakh are insured under the Deposit Insurance and Credit Guarantee Corporation (DICGC).
Bank Also Offers Attractive FD Rates
Apart from savings accounts, Unity Small Finance Bank also offers attractive fixed deposit (FD) returns.
Its 501-day special FD offers:
8% annual interest for regular customers
8.50% annual interest for senior citizens
Other small finance banks are also offering competitive FD rates:
Utkarsh Small Finance Bank: 8.10% for regular customers and 8.25% for senior citizens on a 666-day FD.
Ujjivan Small Finance Bank: 7.20% for regular customers and 8.30% for senior citizens on a 2-year FD.
