FD Rates Hit 8.30%: Are You Earning Enough?

Two small finance banks have quietly raised their FD rates. Unity Small Finance Bank now offers up to 8.30% for senior citizens, while AU Small Finance Bank raised its 30-month rate too. Here's what it means for your savings.

Here's what happened: Unity Small Finance Bank raised its 501-day FD rate to 7.80% for general depositors and 8.30% for senior citizens.. AU Small Finance Bank increased its 30-month FD rate to 7.40% for regular customers and 7.90% for senior citizens.. Small finance banks consistently offer 0.50–1.50% higher FD rates than large public sector banks to attract retail deposits..

What you should do: Compare your current FD rate against these new rates on your bank's app or website — if you're earning below 7%, you may be leaving money on the table.. Check the deposit insurance limit: all bank FDs are insured only up to ₹5 lakh per depositor per bank under DICGC, so split large amounts across banks.. If you are a senior citizen (60+), ask specifically for the senior citizen rate — banks do not automatically apply it unless you declare your age at the time of booking..

Book FDs for slightly unusual tenures like 501 days instead of standard 1-year or 2-year tenures — banks often offer their highest promotional rates on these specific odd-day buckets.