If you want to earn higher interest on your savings, there is good news. Unity Small Finance Bank has revised the interest rates on both savings accounts and fixed deposits (FDs). The new rates came into effect on August 1.
The bank is now offering up to 7% annual interest on savings accounts, while senior citizens can earn up to 8.5% annual interest on fixed deposits.
The revised rates could benefit customers looking for safe investment options with better returns.
Higher Savings Balance Will Earn Higher Interest
Under the bank’s revised savings account interest structure:
Savings account balances up to ₹1 lakh will earn 4.5% annual interest.
Balances above ₹1 lakh and up to ₹5 lakh will earn 6% annual interest.
Balances above ₹5 lakh will earn 7% annual interest.
This means the higher your savings account balance, the higher the interest you can earn.
The bank has also announced that interest on savings accounts will be credited every month.
The interest will be calculated according to the new slab system, allowing customers to receive regular interest payments and helping their savings grow faster.
FD Interest Rates Also Revised
Apart from savings accounts, Unity Small Finance Bank has also revised the interest rates on fixed deposits.
According to the bank, general customers will receive 8% annual interest on fixed deposits of less than ₹3 crore with a tenure of 501 days. Senior citizens will earn 8.5% annual interest on FDs of the same tenure.
These interest rates are currently considered attractive compared to many other banks.
However, interest rates for FDs with different tenures vary depending on the deposit period and the customer category.
The bank has said that senior citizens will continue to receive additional interest over the rates offered to regular customers. Customers should check the applicable interest rate based on their investment period before investing.
Choose the Right FD Tenure Before Investing
Fixed deposits continue to be one of the most popular investment options for people who want safe returns on their savings.
At a time when many banks are offering higher deposit rates, choosing the right bank and the right FD tenure can help increase your returns.
Before investing, customers should not only compare interest rates but also carefully understand the bank’s terms and conditions.
The bank has also stated that interest rates on its deposit schemes may change from time to time. Therefore, customers should confirm the latest rates through the bank’s official website or branch before making an investment.
Deposits Are Insured Up to ₹5 Lakh
Another important benefit for customers is that deposits with Unity Small Finance Bank are covered under the Deposit Insurance and Credit Guarantee Corporation (DICGC) insurance scheme.
Under this scheme, each depositor gets insurance coverage of up to ₹5 lakh. This means that if the bank faces any unforeseen financial difficulties, deposits of up to ₹5 lakh remain protected as per DICGC rules.
With higher interest rates and deposit insurance protection, the bank’s latest offering provides both better returns and added security for customers.
