FD Interest Rates: This Bank Offers Up To 8.50% On Fixed Deposits; Check Tenure-Wise Rates

Fixed deposits remain a popular choice for savers who prefer predictable returns over market-linked investments. Unity Small Finance Bank has revised the interest rates applicable to fixed deposits below ₹3 crore, with rates varying according to the investment period. The revised structure includes a special 501-day tenure and additional interest for senior citizens. For investors considering an FD, the tenure can make a significant difference to the eventual return.

FD Rates Vary According To The Tenure

The bank's revised FD rates are applicable from July 15, 2026, for deposits below ₹3 crore.

The interest offered depends on how long the money remains invested. Short-duration deposits carry comparatively lower rates, while selected longer and special tenures offer higher returns.

For regular customers, the rates mentioned in the applicable rate structure range from 4% to 8%, while senior citizens can receive an additional interest benefit on eligible deposits.

Investors should therefore look beyond the headline rate and check the specific tenure before booking an FD.

Short-Term FDs Offer Rates From 4%

For those who do not want to lock away their savings for a long period, the bank offers several short-duration options.

FDs with maturity periods of 7 to 14 days and 15 to 45 days carry an interest rate of 4%.

The rate rises to 4.75% for deposits with a tenure of 46 to 60 days.

For periods of 61 to 90 days and 91 to 164 days, the applicable rate is 5%.

Deposits running from 165 days to six months offer 5.50% interest.

These options may appeal to savers looking for relatively short investment periods, although the return is lower than what is available on selected special and longer-duration deposits.

Higher Rates Available On Selected Tenures

The interest rate increases further for certain medium-term deposits.

FDs held for more than six months up to 201 days and those with a tenure of 202 to 364 days offer 6.25% interest.

The rate rises to 7.50% for an FD of up to 12 months.

For deposits extending from 12 months and one day to 500 days, the applicable rate is 6.50%.

One of the notable options is the special 501-day FD, which offers a higher rate than many of the other available tenures.

501-Day FD Stands Out

The special 501-day deposit is one of the key attractions for investors seeking a relatively short lock-in period with a higher rate.

The source material cites a rate of 7.80% for regular customers and 8.30% for senior citizens for this special 501-day tenure.

The 501-day period works out to roughly one year and four months.

One advantage of an FD is that the interest rate applicable when the deposit is booked remains locked for that investment. Therefore, subsequent changes in FD rates do not alter the rate applicable to an already booked deposit.

This can provide greater certainty to investors who want to know the rate they will earn over the agreed tenure.

Senior Citizens Get An Additional Interest Benefit

Senior citizens receive an additional interest rate of up to 0.50 percentage points on most eligible FDs covering tenures from 46 days to 10 years.

This means older investors can earn more than regular customers on qualifying deposits.

For example, the source material states that senior citizens can earn 8% on 12-month FDs and up to 8.50% on the special 501-day FD under the stated rate structure.

Across the available tenures, senior citizen rates are listed between 4% and 8.50%, depending on the duration and applicable deposit category.

Long-Term FD Rates Go Up To 6.75%

Investors willing to keep their money invested for several years have longer-duration options as well.

Deposits with tenures ranging from 502 days to 60 months offer an interest rate of 6.75%.

For FDs extending from 60 months to 120 months, the rate is 6%.

These longer tenures may suit investors who prioritise stability and do not expect to need the money in the near term. However, according to financial experts, investors should consider their liquidity requirements before locking savings away for several years.

What Happens To ₹5 Lakh In A 501-Day FD?

The special 501-day FD can be used to understand the potential difference between regular and senior citizen rates.

According to the figures given in the source material, a regular customer investing ₹5 lakh at 7.80% would receive approximately ₹5.56 lakh at maturity. The stated interest earned over the 501-day period is around ₹55,900.

For a senior citizen earning 8.30%, the same ₹5 lakh deposit would grow to approximately ₹5.60 lakh, representing interest of around ₹60,000.

The actual maturity amount can depend on the bank's calculation method and the applicable terms of the deposit, so investors should check the maturity value before booking.

Choosing The Right FD Requires More Than Comparing Rates

The highest advertised interest rate may not necessarily make one tenure suitable for every investor.

Someone who needs access to the money within a few months may prefer a shorter FD despite the lower interest rate. Another investor with no immediate requirement for the funds may consider a longer tenure.

Senior citizens may have a different preference because the additional interest benefit can improve the return on eligible deposits.

Investors should also consider the deposit amount, maturity date, premature withdrawal conditions and their own cash-flow requirements before committing their savings.

Interest Rate Changes Do Not Affect Existing FDs

Once an FD is booked, the interest rate applicable to that deposit is fixed for the agreed tenure.

If the bank subsequently changes its rates for new deposits, those changes do not alter the rate on an existing FD.

This feature is particularly relevant when interest rates are moving. Investors who lock in a rate can continue earning according to the terms agreed at the time of investment, even if the rates offered on new deposits later move higher or lower.

For anyone considering a fixed deposit, checking the exact rate for the chosen tenure before booking remains essential.

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