Unity Small Finance Bank Limited, popularly known as Unity Bank, has announced an increase in the interest rates offered on its fixed deposits (FDs) for selected tenures. These revised rates apply to deposits below ₹2 crore and have been effective since October 9, 2023.
One of the significant changes is the attractive rate for senior citizens investing in Fixed Deposits with a tenure of 701 days. Unity Bank now offers senior citizens a lucrative interest rate of 9.45% per annum for this duration, while general investors can earn an interest rate of 8.95% per annum for the same tenure.
Unity Bank continues to offer some of the highest interest rates for these particular tenures. For the tenure of 1001 days, the bank provides a rate of 9.50% per annum for senior citizens and 9.00% per annum for general investors. Additionally, for tenures ranging from 181 to 201 days and 501 days, Unity Bank offers an interest rate of 9.25% per annum for senior citizens and 8.75% per annum for general investors.
These revised FD interest rates are part of Unity Bank’s efforts to provide competitive returns to its depositors, especially senior citizens who often rely on the interest income from their deposits.
For regular customers, Unity Bank offers a range of interest rates, varying from 4.5% to 9% on deposits maturing from seven days to ten years. Meanwhile, senior citizens are entitled to an interest rate ranging from 4.5% to 9.5% per annum for the same tenors.
In the current market, several banks have been adjusting their fixed deposit interest rates. While Unity Bank has raised rates on specific FD tenures, other banks like Bank of Baroda have also increased interest rates on FDs across various tenors by up to 50 basis points. However, some private banks such as Yes Bank and HDFC Bank have reduced FD interest rates on select tenures. IndusInd Bank and Punjab & Sindh Bank have also made revisions to their FD interest rates in October 2023.
The Reserve Bank of India (RBI) recently left the benchmark repo rate unchanged at 6.50 percent during its October policy review. This was the fourth consecutive time that the RBI decided to keep the interest rates steady, maintaining the repo rate at the same level since February 2023. These changes in interest rates across banks reflect the dynamic nature of the financial sector in response to market conditions and customer demands.
