Unity Small Finance Bank has increased its highest savings account rate to 7% for balances above ₹5 lakh, signalling intensified competition in deposit rates amid broader rate hikes and tiered slabs introduced in August 2026.
Unity Small Finance Bank has lifted the top rate on its savings accounts to 7% a year for higher balance tiers, according to a report by InformalNewz. The new rates took effect on August 1, 2026 and are structured in slabs, with balances up to ₹1 lakh earning 4.5%, amounts above ₹1 lakh and up to ₹5 lakh earning 6% and sums above ₹5 lakh attracting the highest rate.
The bank’s method means customers do not earn the headline rate on their entire balance. For example, a depositor with ₹6 lakh would receive 4.5% on the first ₹1 lakh, 6% on the next ₹4 lakh and 7% on the remaining ₹1 lakh. InformalNewz also noted that Unity Small Finance Bank is regulated by the Reserve Bank of India and that deposits are covered by the Deposit Insurance and Credit Guarantee Corporation up to ₹5 lakh.
The savings-account revision comes alongside a broader move in deposit pricing. InformalNewz said the bank has also raised fixed-deposit rates, pointing to a 501-day special scheme paying 8% to general customers and 8.50% to senior citizens. Other rate-tracking sites show a more detailed picture: BankBazaar lists Unity Small Finance Bank’s fixed-deposit range at 4.50% to 9.50% for general customers, Paisabazaar places the band at 4% to 7.80% for general customers and 4% to 8.30% for senior citizens, while Moneycontrol shows rates of 4% to 7.85% and 4% to 8.35%, respectively. That suggests the 8% figure in InformalNewz likely refers to a specific tenor rather than the bank’s full deposit schedule.
For savers, the change highlights how small finance banks continue to compete on deposit rates, especially for customers willing to keep larger balances or lock money away for a fixed term. The trade-off is that the best returns are often available only within narrow slabs or selected maturities, so the effective yield depends on both balance size and tenor.
Disclaimer: This article is intended to inform and educate, not to recommend or endorse any financial product, investment or strategy. Please consider your own financial circumstances and seek professional advice where appropriate before making financial decisions.
