FD Rates Hit 8.30%: Is Your Bank Paying You Less?

Two small finance banks have quietly raised their FD rates, offering up to 8.30% for senior citizens. If your FD is sitting in a big bank at 6.5-7%, you could be leaving hundreds of rupees on the table every month.

Here's what happened: Unity Small Finance Bank now offers 7.80% to general investors and 8.30% to senior citizens on its 501-day fixed deposit.. AU Small Finance Bank raised its 30-month FD rate to 7.40% for regular customers and 7.90% for senior citizens.. Small finance banks consistently offer 0.5–1% higher FD rates than large private and public sector banks to attract retail deposits..

What you should do: Compare your current FD rate with small finance bank rates on platforms like BankBazaar or Paisabazaar — a 1% gap on ₹5 lakh costs you ₹5,000 a year.. Check if your existing FD is up for renewal soon — do NOT let it auto-renew at the old rate; re-negotiate or switch banks at maturity.. If you are a senior citizen (60+), always ask specifically for the senior citizen rate — banks don't automatically apply it unless you declare your age and submit proof..

Deposits in small finance banks are insured by DICGC up to ₹5 lakh — the same guarantee as SBI or HDFC Bank. Splitting ₹10 lakh across two small finance banks keeps your full corpus protected.