Fixed deposit (FD) interest rate: In FY23, bank FD interest rates increased from roughly 5.5% to an average of 7%. Owing to the high interest rate regime that Governor Shaktikanta Das of the Reserve Bank of India (RBI) had to enact in order to control inflation. Nonetheless, in this environment of high interest rates, some banks are offering returns on deposits that are higher than the 7.10% annual interest rate of the Public Provident Fund (PPF). One such bank offering FD interest rates up to 9% for ordinary depositors is Unity Small Finance Bank. Senior citizen fixed deposit account holders at this bank are eligible for an additional 50 basis points (bps) interest rate, which translates to an annual return of up to 9.50%.
Bank FD returns for the general public
According to statistics on the Unity Small Finance Bank website, the private lender is providing a general FD rate of 8.75 percent on fixed deposits for a duration of 181-201 days. This bank’s FD rates on general fixed deposits for 501 days are 8.75 percent. But, Unity Small Finance Bank is currently giving a 9% fixed deposit interest rate on fixed deposits with a duration of 1001 days.
FD rates for senior citizens
Unity Small Finance Bank offers senior citizens who have bank fixed deposits an additional 50 bps interest rate, just like all other banks do. As a result, the senior citizen FD rate offered by Unity Small Finance Bank is 9.25 percent annually if they open a fixed deposit account for a tenor of 181 to 201 days or 501 days. The fixed deposit rate offered by this bank, however, is 9.50% on an account for senior citizens with a duration of 1001 days.