Unity Small Finance Bank FD Interest Rates 2025: Complete Investment Guide
Key Highlights:
- Latest FD Rates: Up to 9.10% for senior citizens, 8.60% for regular customers
- Financial Performance: 38% YoY growth in AUM reaching ₹10,985 crore (FY24)
- Easy Investment: Invest directly through Finzace
- Deposit Security: DICGC insurance up to ₹5 lakh per depositor
What Is Unity Small Finance Bank? An Overview
Unity Small Finance Bank (USFB) has emerged as a standout player in India’s competitive banking sector, particularly for investors seeking higher returns on fixed deposits with institutional safety. Established under the Reserve Bank of India’s (RBI) financial inclusion initiative, USFB has rapidly gained traction by offering competitive interest rates on various financial products including fixed deposits, bonds, and digital gold.
What sets Unity Small Finance Bank apart is its digital-first approach combined with traditional banking stability. Through platforms like Finzace, investors can now access USFB’s high-yield financial products without the traditional requirement of opening a dedicated bank account—streamlining the investment process significantly.
Unity Small Finance Bank Financial Performance (FY 2024-25)
USFB has demonstrated remarkable financial strength and growth trajectory in recent quarters, making it an increasingly attractive option for conservative investors. Let’s examine the key financial metrics that showcase its stability:
Net Profit and Growth
- Q4 FY24: Net profit of ₹143 crore, a dramatic improvement from a ₹52 crore loss in the same period previous year
- Growth Driver: 55% increase in net interest income year-over-year
Assets and Deposits
- Assets Under Management: Grew by 38% YoY to reach ₹10,985 crore (FY24)
- Total Deposits: Surged by 84% to ₹11,952 crore, indicating strong customer trust
- Capital Adequacy Ratio: Maintained at 36.4%, far exceeding regulatory requirements
Asset Quality and Profitability
- Net Non-Performing Assets (NNPA): Impressively low at 0.6%
- Operating Profit Q4 FY24: ₹147 crore, nearly quadrupling from ₹37 crore YoY
- Net Interest Margin: Strong at 10.8%, reflecting efficient asset-liability management
These numbers reflect Unity Small Finance Bank’s solid foundation and prudent management, essential factors for any fixed deposit investor to consider.
Unity Small Finance Bank FD Interest Rates (Updated May 2025)
Unity Small Finance Bank offers some of the most competitive fixed deposit rates in the market, making it a preferred choice for risk-averse investors seeking reliable returns. Here’s the current rate structure:
| Tenure | Regular Rate (%) | Senior Citizen Rate (%) |
| 7 days | 4.50% | 4.50% |
| 15 days | 4.75% | 4.75% |
| 46 days | 5.75% | 6.25% |
| 61 days | 6.00% | 6.50% |
| 91days | 6.25% | 6.75% |
| 6 months 1 day | 7.00% | 7.50% |
| 1 year | 7.25% | 7.75% |
| 1 year 1 day | 7.50% | 8.00% |
| 501 days | 8.00% | 8.50% |
| 18 months | 7.75% | 8.25% |
| 701 days | 8.25% | 8.75% |
| 1001 days | 8.60% | 9.10% |
| 3 years 1 day | 8.15% | 8.65% |
| 5 years | 8.15% | 8.65% |
| 10 years | 7.00% | 7.50% |
Why Choose Unity Small Finance Bank Fixed Deposits?
1. Superior Interest Rates
USFB consistently offers interest rates that are 0.5-1.5% higher than most traditional banks, significantly enhancing your returns over longer tenures.
2. Regulatory Protection
As an RBI-regulated entity, Unity Small Finance Bank provides the security of deposit insurance through the Deposit Insurance and Credit Guarantee Corporation (DICGC) up to ₹5 lakh per depositor.
3. Flexible Investment Options
- Tenure flexibility: Choose from 7 days to 10 years based on your financial goals
- Tax-saving options: Section 80C compliant tax-saver FDs available
- Loan facility: Option to take loans against your FD at competitive rates
4. Seamless Digital Experience
Through Finzace’s platform, you can invest in Unity Small Finance Bank FDs without:
- Opening a separate bank account
- Visiting any branch
- Dealing with extensive paperwork
How Unity Small Finance Bank Compares to Competitors
When compared to other leading banks and small finance banks, Unity Small Finance Bank consistently offers competitive advantages:
| Bank | 1-Year FD Rate | 3-Year FD Rate | Senior Citizen Bonus |
| Unity Small Finance Bank | 7.25% | 8.15% | +0.50% |
| Major Private Bank Average | 5.25% | 5.75% | +0.50% |
| Public Sector Bank Average | 5.00% | 5.50% | +0.25% |
| Other Small Finance Banks | 5.75% | 6.25% | +0.35% |
Rates as of May 2025
How to Invest in Unity Small Finance Bank FDs Through Finzace
Investing in Unity Small Finance Bank fixed deposits has never been easier. Follow these simple steps:
- Visit Finzace: Register or log in to your Finzace account
- Select Product: Choose Unity Small Finance Bank from the available options
- Pick Your FD: Select your preferred tenure and interest rate option
- Complete KYC: Upload necessary documents (one-time process)
- Fund Your Investment: Transfer the investment amount
- Receive Confirmation: Get your FD receipt and start earning interest
The entire process takes less than 10 minutes and can be completed entirely online.
Frequently Asked Questions
Is Unity Small Finance Bank safe for FD investments?
Yes. Unity Small Finance Bank is regulated by the Reserve Bank of India (RBI) with deposit insurance up to ₹5 lakh per depositor under the DICGC scheme.
Can I withdraw my FD before maturity?
Yes, premature withdrawal is allowed, subject to a penalty that typically reduces the applicable interest rate by 0.5-1%.
How do I earn interest on my Unity Small Finance Bank FD?
You can choose between two interest payout options:
- Cumulative: Interest compounded and paid at maturity
- Non-cumulative: Regular interest payouts (monthly/quarterly/half-yearly/annual)
Are TDS regulations applicable to these FDs?
Yes, standard TDS rules apply. If your interest earned exceeds ₹40,000 annually (₹50,000 for senior citizens), 10% TDS will be deducted unless you submit Form 15G/15H.
Does Unity Bank offer special rates for women investors?
Currently, Unity Small Finance Bank doesn’t offer special rates specifically for women investors, though they do provide the senior citizen benefit of 0.50% extra interest.
Can NRIs invest in Unity Small Finance Bank FDs?
Yes, NRIs can invest through NRO accounts, subject to applicable FEMA regulations.
Conclusion: Why Unity Small Finance Bank FDs Make Financial Sense in 2025
In today’s volatile investment landscape, Unity Small Finance Bank fixed deposits offer a compelling proposition: above-average returns with institutional safety. With interest rates reaching up to 8.60% (9.10% for senior citizens), these FDs outperform most traditional bank offerings while maintaining the security of RBI regulation and DICGC coverage.
The bank’s strong financial performance—with 38% AUM growth, 84% deposit growth, and a solid 36.4% capital adequacy ratio—further reinforces investor confidence. When coupled with the convenience of platform-based investing through Finzace, Unity Small Finance Bank emerges as a smart choice for both seasoned investors and those new to fixed income products.
Whether you’re saving for short-term goals or building long-term wealth, Unity Small Finance Bank’s fixed deposits offer the right balance of returns, safety, and accessibility in 2025’s financial landscape.
Ready to start earning higher returns? Visit Finzace today and invest in Unity Small Finance Bank FDs without the hassle of opening a separate bank account!
Disclaimer: Interest rates mentioned are subject to change as per bank policies. Please verify the latest rates before investing. This article is for informational purposes only and does not constitute financial advice.
