Unity Small Finance Bank advertises 8.00% a year on a fixed deposit for general citizens and 8.50% for senior citizens, at 501 days. It is a small finance bank, which is why the rate sits near the top of the best FD rates table — and why the ₹5 lakh DICGC limit, not the rate, should decide how much you put in.
Rate and tenure
| General rate | 8.00% p.a. |
|---|---|
| Senior citizen rate | 8.50% p.a. |
| Best tenure | 501 days |
| Deposit size covered | Below ₹3 crore |
as of 2026-10-02 · Each bank’s own rate page or rate card, deposits below ₹3 crore
What that pays in rupees
On ₹5,00,000 for 5 years, compounded quarterly.
| Interest at 8.00% | ₹2,42,974 |
|---|---|
| After tax at the 30% slab | ₹1,67,166 |
| What you get at maturity, after tax | ₹6,67,166 |
Interest is taxed at your slab rate, so this assumes the top slab plus 4% cess. At a lower slab you keep more, and TDS applies only once interest crosses the annual threshold — the TDS on FD calculator shows where that line falls. To change the amount or the tenure, use the FD calculator.
How it compares
Unity Small Finance Bank is joint 3rd of the 12 providers we track, level with Shivalik Small Finance Bank and Jana Small Finance Bank at 8.00% for general citizens; its 8.50% for senior citizens is the joint highest, level with Suryoday Small Finance Bank. The nearest large bank, Bank of Baroda, pays 6.75%.
| Bank | Type | General | Senior citizen | Best tenure |
|---|---|---|---|---|
| Suryoday Small Finance Bank | SFB | 8.25% | 8.50% | 5 years exactly |
| Utkarsh Small Finance Bank | SFB | 8.10% | 8.25% | 666 days |
| Jana Small Finance Bank | SFB | 8.00% | 8.30% | Over 2 years to 3 years |
| Shivalik Small Finance Bank | SFB | 8.00% | 8.25% | 23 months 1 day to 27 months |
| Unity Small Finance Bank | SFB | 8.00% | 8.50% | 501 days |
| Bank of Baroda | PSU Bank | 6.75% | 7.25% | 555 days (Golden Goal) |
| Kotak Mahindra Bank | Private Bank | 6.65% | 7.15% | 2 years to under 3 years |
| Punjab National Bank | PSU Bank | 6.60% | 7.10% | 444 days |
| Axis Bank | Private Bank | 6.50% | 7.25% | 18 months to 10 years (senior rate at 5–10 years) |
| HDFC Bank | Private Bank | 6.50% | 7.10% | 3 years 1 day to under 4 years 7 months |
| ICICI Bank | Private Bank | 6.50% | 7.10% | 3 years 1 day to 5 years |
| State Bank of India | PSU Bank | 6.45% | 7.05% | 444 days (Amrit Vrishti); senior rate at 5–10 years |
as of 2026-10-02 · Each bank’s own rate page or rate card, deposits below ₹3 crore
What moves this rate
Small finance bank. Deposit rates are typically the highest available, but DICGC insurance covers ₹5 lakh per depositor per bank — size the deposit accordingly.
FD interest is taxed at your normal slab rate. There is no special treatment, so the advertised rate is a before-tax figure. At the 30% slab plus 4% cess, roughly a third of it goes in tax. The bank also cuts TDS once your interest crosses the yearly limit.
Deposit insurance matters more than the last few decimal points of rate. DICGC covers ₹5 lakh per person per bank, including interest. Anything above that in one bank is uninsured, however good the rate looks. Splitting money across banks keeps every rupee covered.
Tenure-by-tenure figures for regular and senior citizens sit on the Unity Small Finance Bank fixed deposit interest rate page.
Terms change without notice. Confirm the current figures with Unity Small Finance Bank before you act.