Home / Industry / Banking /  Unity Small Finance Bank hikes interest rates on fixed deposits: Details here

Unity Small Finance Bank Limited (Unity Bank), announces an increase in its Callable and Non-Callable Bulk Deposit (Fixed Deposits) interest rates across various tenors. On September 26, 2022, the new interest rates will go into effect. As a result of the adjustment, retail customers may now earn up to 7.65% interest per year, while senior citizens can now earn up to 8.15% per year.

Unity Small Finance Bank Callable Bulk Deposit Rates

On fixed deposits of more than 2 Cr to 100 Crs and above maturing in 7 days to 10 years, the bank is now offering an interest rate ranging from 4.00% to 7.00%. On fixed deposits maturing in 365 Days(1 Year) to 10 years, the bank is now offering a maximum interest rate of 7%. Callable deposits are an option where the bank allows early withdrawals. The bank has said in an official announcement that “For premature withdrawal of fixed deposit, interest rate payable would be corresponding FD rate minus 1.00% for the tenor for which the deposit has actually run."

Unity Small Finance Bank FD Rates
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Unity Small Finance Bank FD Rates (www.theunitybank.com)

Unity Small Finance Bank Non-Callable Bulk Deposit Rates

Non-callable deposits are an option when the bank prohibits premature withdrawals. The bank currently offers an interest rate ranging from 4.00% to 7.25% on Non-Callable Bulk Deposits of more than 2 Cr to 100 Cr and above on deposits maturing in 7 days to 10 years. The bank is now offering non-callable deposits maturing in 2 to 10 years with a maximum interest rate of 7.25%. “Non-callable deposits are not offered to senior citizens due to urgency of requirement. Interest on these deposits will be calculated on quarterly compounding basis for deposits with tenor 6 months and above," the bank has said in a press release.

Unity Small Finance Bank has also said that “Premature withdrawal only allowed as exception in cases of bankruptcy/winding up, directions by court/regulators or operational errors with the approval of Head financial Markets and CRO. In case of such withdrawals, customer will be eligible for the rate of interest as applicable to premature closure of term deposits i.e. Interest rate shall be 1.00% below the rate applicable for the period the deposit has remained with the bank, or 1.00% below the contracted rate, whichever is lower. Such penal rate may be waived in terms of extant policy on setting of interest rates for liabilities."

Unity Small Finance Bank FD Rates
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Unity Small Finance Bank FD Rates (www.theunitybank.com)

Unity Small Finance Bank interest rates on fixed deposits of less than 2 Cr

On fixed deposits of less than 2 Cr at Unity Small Finance Bank, the interest rate is adjusted as of July 6, 2022. On fixed deposits maturing in 7 days to 10 years, the bank is offering an interest rate ranging from 4.00% to 7.00% to the general public and 4.00% to 7.50% for senior citizens. Fixed deposits maturing in 2 to 5 years will fetch a maximum interest rate of 7.65% for the general public and 8.15% for senior citizens.

Unity Small Finance Bank FD Rates
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Unity Small Finance Bank FD Rates (www.theunitybank.com)
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