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For those looking to earn substantial returns through Fixed Deposits (FDs), there is a great opportunity: a bank is offering excellent interest rates on FDs while ensuring the safety of your funds.

There are various ways to invest in the market and earn profits through interest on your hard-earned money. Fixed Deposits (FDs) have long been considered one of the safest and most reliable investment options. Today, we are highlighting a bank that is offering impressive interest rates on FD deposits to its customers.

We are referring to Unity Small Finance Bank. This bank offers interest rates of up to 8% for general customers and up to 8.50% for senior citizens. Let’s take a look at the interest rates offered by the bank for various FD tenures.

Unity Small Finance Bank FD Schemes

FDs with tenures of 165 days to 6 months: General citizens earn interest at a rate of 5.50% per annum for this short-term period.

FDs with tenures of 61 days to 164 days: Senior citizens earn 5.50% interest for this period (compared to 5.00% for the general public).

FDs with tenures of 165 days to 6 months (Senior Citizens): Senior citizens earn 6.00% interest for this period.

FDs with tenures exceeding 5 years up to 10 years: General citizens are offered 6.00% interest under this long-term scheme.

Your money remains safe

Unity Small Finance Bank is a Scheduled Commercial Bank recognized by the RBI. Consequently, deposits of up to ₹5 lakh with this bank are fully insured and secured by the DICGC, a subsidiary of the Reserve Bank. In other words, even if the bank were to completely fail or shut down in the future, the DICGC is legally obligated to repay each account holder an amount of up to ₹5,00,000 (inclusive of both principal and interest) within 90 days.

Furthermore, the Reserve Bank maintains strict oversight of Small Finance Banks. Stringent regulations have been put in place to prevent these banks from facing insolvency; for instance, they are required to maintain at least 15% of their total assets as a secure reserve—a figure significantly higher than the 9% requirement for standard large banks.

Small Finance Banks cannot extend large loans to a single industrialist or corporation. They typically lend to small business owners, farmers, and the general public, which renders the risk of loan default negligible. As for Unity Small Finance Bank, it benefits from strong corporate backing, as it is a joint venture between the Centrum Group and BharatPe.