Unity Small Finance Bank FD Interest Rate
Unity Small Finance Bank is one of India's fastest-growing small finance banks. It was established with the mission and vision of promoting financial inclusion to the rural unbanked, and underserved regions across all parts of the nation. It aims to serve consumers and small businesses by ensuring ease of banking and best-in-class technology.
Interest Rates Chart 2023
| Tenure | For General Citizens (p.a.) | For Senior Citizens (p.a) |
|---|---|---|
| 7 - 14 Days | 4.5% | 4.5% |
| 15 - 45 Days | 4.75% | 4.75% |
| 46 - 60 Days | 5.25% | 5.75% |
| 61 - 90 Days | 5.5% | 6% |
| 91 - 164 Days | 5.75% | 6.25% |
| 165 Days - 6 Months | 5.75% | 6.25% |
| > 6 Months - 201 Days | 8.75% | 9.25% |
| 202 - 364 Days | 6.75% | 7.25% |
| 1 Year | 7.35% | 7.85% |
| 1 Year 1 day | 7.35% | 7.85% |
| Note: All interest rates are updated as of 1st Aug 2023 | ||
returns on FD
Lock in returns as high as
8.35% before they go down
Calculate FD returns
Unity Small Finance Bank@7.4% p.a
₹1,15,795
All you need to know about Unity Small Finance Bank FD Interest Rate
Types of Unity Small Finance Bank fixed deposits.Pros of investing in Unity Small Finance Bank Fixed DepositCons of investing in Unity Small Finance Bank Fixed Deposit Unity Small Finance Bank FD Eligibility CriteriaDocuments Required for Unity Small Finance Bank FD AccountHow to Open an FD with Unity Small Finance Bank?Unity Small Finance Bank Fixed Deposit Premature WithdrawalTax implications on Unity Small Finance Bank FDRelated Interest Pages
Types of Unity Small Finance Bank fixed deposits.
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.
Pros of investing in Unity Small Finance Bank Fixed Deposit
- 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.
Cons of investing in Unity Small Finance Bank Fixed Deposit
- Not dynamic: Interest rates on FD are not dynamic. So, it fails to overcome the risk of inflation.
- Fixed rate: Fixed deposits offer a fixed rate on the investment. Hence, you cannot benefit from higher returns in cases of increased market interest rates.
Unity Small Finance Bank FD Eligibility Criteria
Listed below is the list of those that are eligible to open a fixed deposit account with Unity Small Finance Bank:
- Indian residents
- Sole proprietorship firms
- Hindu Undivided Families (HUFs)
- Trusts
- Limited companies
Documents Required for Unity Small Finance Bank FD Account
The following are the documents required for opening a fixed deposit with Unity Small Finance Bank:
- Identity proof: Passport, Voter ID card, driving licence, Aadhaar card (any one of them) along with two passport-sized photographs
- Proof of residence: Passport, Aadhaar card, Voter ID card, etc.
- Date of birth proof: Birth certificate, Voter ID card, PAN card, Aadhaar card, etc.
How to Open an FD with Unity Small Finance Bank?
Listed below are the steps to open a fixed deposit account with Unity Small Finance Bank:
Step 1: Visit your nearest Unity Small Finance Bank branch.
Step 2: Ask the bank executive for an FD account opening form and fill up all the necessary details like name, address of residence, contact number, PAN, nominee name, etc.
Step 3: Choose the tenure of the deposit.
Step 4: Attach a cheque worth the deposit amount or cash. However, you can also transfer the amount through internet banking.
Step 5: Submit the duly filled FD account opening form and all the necessary documents.
Step 6: 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 Fixed Deposit Premature Withdrawal
Here are the essential points regarding the premature withdrawal of FDs from Unity Small Finance Bank:
- 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.
Tax implications on Unity Small Finance Bank FD
Tax Deducted at Source (TDS)
- TDS will be deducted from the interest accrued on the FDs if the interest is more than ₹40,000 (₹50,000 for senior citizens) in a given financial year.
- For Resident customers, if you have submitted your PAN card details, the deduction will be 10% per year on the interest. The bank will deduct 20% of TDS annually without a PAN card.
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.
How to break FD in Unity Small Finance Bank?
Here are the steps to break your fixed deposit:
Step 1: Visit the nearest Unity Small Finance Bank branch.
Step 2: Tell the bank executive you want to withdraw your FD.
Step 3: The bank executive will then ask you to fill up a form.
Step 4: Fill up the details like FD account number, saving account number, etc. and submit the relevant documents.
Step 5: The bank will transfer your FD amount to your savings account after deducting the applicable penalty.
Disclaimer: The calculator and the results of the same are based on information inputted by you and extracted from third party sources. The information on this page is for illustrative purposes only and does not amount to any investment advice or recommendation. Wint Wealth has no commercial interest or gain in or from the actions resulting from the information displayed on this page. The information displayed on this page does not constitute an invitation to invest in any product nor is it a promise of performance. Interest rates are not updated in real time and you are advised to make your own enquiries, consult a professional advisor and verify the information prior to taking any investment decisions.