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Unity Small Finance Bank Fixed Deposit

Updated 06 Dec 2023

Unity Small Finance Bank is heralded as one of India's rapidly growing small finance banks. Established to foster financial inclusion in rural, unbanked, and underserved regions, it has marked a significant footprint nationwide.

Catering mainly to consumers and small-scale businesses, the bank stands out with its effortless banking strategies combined with avant-garde technology. For those pondering over the fixed deposit schemes of Unity Small Finance Bank, here's an all-inclusive guide:

Types of FDs in Unity Small Finance Bank

Regular Fixed Deposit
 

Benefits of Investing in Unity Small Finance Bank Fixed Deposits

  • Period: The FD with Unity Small Finance Bank ranges from 7 days to 10 years.
  • DICGC insurance: The amount invested with the bank is covered by Deposit Insurance and Credit Guarantee Corporation (DICGC) for the total sum of ₹5 lakhs.
  • Minimum amount: Fixed deposits with Unity Small Finance Bank can be opened with a minimum investment of ₹1,000.
  • Preference to senior citizens: Additional 0.5% p.a. for senior citizens.
  • Nomination facility: Depositors can nominate beneficiaries for their Unity Small Finance Bank FDs investments.

Features of Unity Small Finance Bank FDs

Regular Fixed Deposit

  • Minimum investment: ₹1,000
  • Maximum investment: No upper limit.
  • Scheme tenure: 7 days to 10 years.
  • Senior citizens earn an additional 0.5% p.a.
  • You can choose the interest payouts monthly, quarterly or on maturity.
  • You can avail of overdraft facilities against FD.
  • Premature withdrawal is allowed with an applicable penalty.
  • A nomination facility is also available.
  • Based on tenor, the interest rates ranges from 4.50% to 9.00% for the general public and 4.50% to 9.50% for senior citizens.

Senior Citizens FD

  • Basic Feature: Exclusively designed for senior citizens, this FD aims to offer higher returns for those aged 60 years and above.
  • Higher Interest Rates: Based on tenor the interest rates ranges from 4.50% to 9.00% for the general public and 4.50% to 9.50% for senior citizens.
  • Flexible Tenures: Like the regular FD, tenures range from 7 days to 10 years.
  • Safety: The amount deposited is insured up to ₹5 lakhs by the Deposit Insurance and Credit Guarantee Corporation (DICGC).

Tax Saving FD

  • Basic Feature: An FD that offers dual benefits – attractive returns and tax savings.
  • Tax Benefit: Investors can claim a deduction under Section 80C of the Income Tax Act, 1961, on the invested amount up to ₹1.5 lakhs per annum.
  • Lock-in Period: This FD has a mandatory lock-in period of 5 years, ensuring the sum is invested for a fixed duration to avail tax benefits.
  • Interest Payout: Interest can be received either monthly, quarterly, or annually, but the tax benefit is on the principal amount only.
  • Based on tenor, the interest rates range from 4.50% to 9.00% for the general public and 4.50% to 9.50% for senior citizens.

Flexi FD

  • Basic Feature: A dynamic FD allowing flexibility in terms of tenure and withdrawal.
  • Flexible Tenure: Investors can change the tenure without any penalty, catering to sudden financial needs or goals.
  • Premature Withdrawal: Unlike many other FDs, the Flexi FD allows you to withdraw the sum before the maturity date without incurring a heavy penalty.
  • Extension of Tenure: If investors feel the need to continue with the FD, they can easily extend the tenure to earn more interest.
  • Based on tenor the interest rates ranges from 4.50% to 9.00% for the general public and 4.50% to 9.50% for senior citizens.
     

Eligibility Criteria

  • Indian residents
  • Sole proprietorship firms
  • Hindu Undivided Families (HUFs)
  • Trusts
  • Limited companies

Documents Required

Identity Proofs

  • Passport
  • Voter ID card
  • Driving licence
  • Aadhaar card (any one of them) along with two passport-sized photographs

Address Proofs

  • Passport
  • Aadhaar card
  • Voter ID card

Date of Birth Proof

  • Birth certificate
  • Voter ID card
  • PAN card
  • Aadhaar card

How to open an FD in Unity Small Finance Bank

  • Visit your nearest Unity Small Finance Bank branch.
  • Ask the bank executive for an FD account opening form and fill in all the necessary details like name, residence address, contact number, PAN, nominee name, etc.
  • Choose the tenure of the deposit.
  • Attach a cheque worth the deposit amount or cash. However, you can also transfer the amount through internet banking.
  • Submit the duly filled FD account opening form and all the necessary documents.
  • The executive will provide you with an acknowledgement slip after verification. You have now successfully opened an FD account with Unity Small Finance Bank.

Unity Small Finance Bank FD Premature Withdrawal

  • Premature withdrawal is permitted for regular fixed, recurring, and callable bulk deposits.
  • For regular and callable bulk deposits, a penalty rate of 1% is charged on the applicable interest rate or the contracted rate, whichever happens to be lower.
  • For non-callable bulk deposits, premature withdrawal is not permitted.

FAQs

Are there better investment options compared to fixed deposits?
 

FDs provide a guaranteed return on investment and are relatively low-risk compared to other investment instruments.

To whom does Unity Small Finance Bank offer additional interest rates?

Additional interest rates of around 0.5% p.a. are offered on senior citizens' fixed deposits.

What penalty charges are applicable for a fixed deposit account on premature withdrawals?

The penalty charges applicable for a premature withdrawal of an FD is 1% of the rate of interest for the period you hold the FD with the bank or the contracted rate, whichever is lower among the two.

Is the ₹5 lakhs DICGC insurance cover applicable on Unity Small Finance Bank FD?

Yes. ₹5 lakhs DICGC (Deposit Insurance and Credit Guarantee Corporation) insurance cover applies to Unity Small Finance Bank FD.

When is the right time to invest in an FD?

The right time to invest in a fixed deposit depends on the investor's financial goals, risk appetite, and prevailing interest rates. Generally, it is advisable to invest in fixed deposits when the interest rates are high and are expected to remain stable for the investment period.

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Unity Small Finance Bank

Calculate Unity Small Finance Bank FD Returns

₹1,00,000
6%
365
days
daysmonthsyears
Maturity Amount₹1,06,000

Understanding Fixed Deposit

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