Unity Small Finance Bank raises rates on 501-day fixed deposits, offers over 8% for seniors

Unity Small Finance Bank has increased its 501-day fixed deposit rates, making it one of the more attractive options for savers seeking fixed returns, especially seniors who can earn over 8%. The revised rates, effective from June 11, 2026, strengthen the bank’s competitive position in the short-to-medium-term fixed deposit market.

Unity Small Finance Bank has lifted the rate on its special 501-day fixed deposit, keeping the product among the more generous short-to-medium-term options in the market for savers who want fixed returns. According to the bank’s June 11, 2026, notice, the new rate is 7.80% a year for regular customers and 8.30% for senior citizens. Reuters-style market coverage from The Economic Times said the revised rates took effect from that date.

The appeal of the offer is not just the headline yield. The rate is locked in when the deposit is opened, so later changes to the bank’s FD table do not affect the agreed return. Paisabazaar says Unity Small Finance Bank is a scheduled bank covered by deposit insurance through the Deposit Insurance and Credit Guarantee Corporation, which insures deposits up to ₹5 lakh per depositor in each scheduled bank. The bank also offers a range of payout options, including monthly, quarterly and maturity-linked interest.

For investors comparing term deposits, the 501-day tenor stands out because it sits in a sweet spot between short liquidity and higher returns. Bankbazaar’s rate table shows that Unity’s FD book extends from as little as seven days to 10 years, with senior citizens generally receiving an additional rate premium. Market reports have noted that the bank has used the 501-day deposit as a promotional tenure before, with the latest revision pushing the senior-citizen rate above 8% and the general rate to 7.80%, reinforcing the bank’s position as one of the more aggressive payers among small finance lenders.