FD: Fixed deposits (FDs) have always been considered a safe and reliable investment option in India. Especially during times of volatile stock markets, many investors turn to FDs to secure their money while earning better returns. Now, there’s good news for FD investors. Two of the country’s leading small finance banks, Unity Small Finance Bank and AU Small Finance Bank, have increased interest rates on FDs for select tenures. This will give investors the opportunity to earn more than before.
New FD Rates Announced
First, the bank has increased the interest rate on its popular 501-day FD scheme, effective June 11, 2026. General customers will now receive 7.80% annual interest on FDs with this term, while senior citizens will benefit from 8.30% annual interest. This rate is currently considered quite attractive compared to many major public and private banks. This is why this FD scheme could become increasingly popular among investors seeking better returns.
Not only FDs, Unity Bank also offers attractive interest rates on its savings accounts. According to the bank, it offers 7% annual interest on deposits above Rs 10 lakh and 6% annual interest on deposits between Rs 1 lakh and Rs 10 lakh. Therefore, this bank can be a good option for those who prefer to keep their money in a savings account. Unity Bank is offering attractive FD interest rates across multiple tenures.
General citizens can earn up to 7.80% interest on a 501-day FD, while senior citizens can get up to 8.30%, making it one of the highest-paying Fixed Deposit options. For a 12-month FD, the bank offers 7.50% for regular customers and 8.00% for senior citizens. Long-term deposits of 3–5 years fetch 6.75% (7.25% for senior citizens), while shorter tenures start from 4.00%. These rates provide investors with flexible options to maximize returns based on their investment horizon.
Meanwhile, AU Small Finance Bank has revised its FD interest rates, providing relief to its customers. The bank has increased the interest rate on 30-month FDs from 7.25% to 7.40%. This rate is even more attractive for senior citizens. They will receive 7.90% annual interest on FDs of the same term, up from 7.75% previously. The new rates are effective June 10, 2026.
Looking at other FD schemes from AU Small Finance Bank, the bank offers the highest interest rates for tenors ranging from 30 months 1 day to 36 months. This will benefit investors who are looking for a safe, medium-term investment with a high return.
