Banks have been increasing interest rates on term deposits (FD) since May 2022. After the Reserve Bank of India (RBI) hiked the repo rate, banks start announcing the interest rate increase on term deposits. Unity Bank now offers seniors an attractive rate of 9% per annum on FDs with selected mandates. This is the second time that Unity Bank has revised its FD interest rate in November. According to the bank’s website, the interest rate on deposits is revised from November 21.
Unity Small Finance Bank Latest FD Interest Rates
For regular consumers, it offers interest rates between 4.5% and 8.50%. It currently offers senior citizens an interest rate of 9% per annum on fixed deposits invested for terms of 181 and 501 days, respectively, while retail investors get 8.50% for the same terms.
According to the information available on the bank’s website, in the event of an early withdrawal of a fixed deposit, the interest rate to be paid would be the corresponding FD rate less 1.00% for the term for which the deposit actually accrued .
Unity Bank has also increased its interest rates on redeemable and non-redeemable block deposits (deposits greater than ₹2 millions). Redeemable block deposits offer up to 8% interest per annum. while non-refundable bulk deposits offer up to 8.10% interest per annum.
Unity Small Finance Bank has been recognized as a regular bank by the RBI, which makes its depositors eligible for deposit insurance provided by the Depositor Insurance and Credit Guarantee Corporation (DIGCC). DICGC’s deposit insurance coverage insures accumulated deposits up to ₹5 lakh made by each depositor, including their fixed deposits, savings, current and recurring deposits, in each scheduled bank in case of bankruptcy or merger/merger of a scheduled bank.
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