Unity Small Finance Bank Tax Saving FD

Not interested in equity-based tax saving options?Unity Small Finance Bank Tax-Saving FD can be the perfect alternative for you! This product offers competitive returns (up to 7.75% p.a. as of July 25, 2025) and comes with the bonus of tax deduction under Section 80C. 

Want to know more? In this article, let’s understand what Unity Small Finance Bank tax-saving FD is and how it actually reduces your tax. We will also learn who’s eligible, the lock-in period, and check out the latest Unity Small Finance Bank tax-saving FD interest rate 2025.

What is a Unity Small Finance Bank Tax-Saving FD?

The Unity Small Finance Bank Tax-Saving FD is a fixed-income option that lets you reduce your taxable income under Section 80C of the Income Tax Act. It is a low-risk investment alternative compared to equity-based tax-saving instruments like ELSS (Equity Linked Saving Scheme). 

If you invest up to ₹1.5 lakh in this FD in a financial year, you can claim that amount as a deduction when filing your income tax return (ITR). However, this FD comes with a mandatory lock-in period of 5 years, during which you cannot withdraw the money. 

If you are looking to save tax without market risk, you can open a Unity Small Finance Bank Tax-Saving FD and claim up to ₹1.5 lakh deduction under Section 80C.

Key Features of Unity Small Finance Bank Tax-Saving FD

Unity Small Finance Bank Tax-Saving FD is best suited for risk-averse investors who are looking to:

• Earn guaranteed returns over 5 years 

and

• Reduce their taxable income by 100% of the amount invested (up to ₹1.5 lakh). 

Want to know more? Check out the key features of Unity Small Finance Bank tax-saving FD through the table below:

Feature	Details
Tenure and Lock-in	5-year mandatory lock-in period.  Premature withdrawal is not allowed.
Minimum Investment	₹1,000
Maximum Investment	₹1.5 lakh
Tax Benefit	100% of the invested principal amount qualifies for deduction under Section 80C
Interest Taxation	Interest is taxable and added to your income.  TDS applies if the yearly interest exceeds ₹50,000 (₹1,00,000 for senior citizens)
Interest Payout Options	Monthly Quarterly Cumulative (reinvested with principal)
Eligibility	Available to resident individuals and Hindu Undivided Families (HUFs)
Senior Citizen Benefit	Extra 0.50% interest over the regular rate

Please note that a loan or overdraft facility is not available against this FD. You cannot even use it as collateral and secure funding from any financial institution.

How Does Unity Small Finance Bank Tax-Saving FD Work?

Unity Small Finance Bank tax-saving FDs are low-risk investments that provide non-market-linked returns. Please realise that they operate differently from ELSS and do not offer quick gains.

Furthermore, you can invest any amount, but only up to ₹1.5 lakh qualifies for tax deduction under Section 80C. Want to know how this FD works? Find out below:

• Firstly, you calculate your “gross total income” by adding income from all sources, such as salary, house property, capital gains, and more.
• Now, deduct the amount you invested in the Unity Small Finance Bank Tax-Saving FD from this gross total income.
• The result is your “net taxable income,” which will be taxed according to your applicable income tax slabs. 

For more clarity, let’s study an example:

Say your total income for the financial year is as follows:

Salary income	Rental income (house property)	Interest income (other sources)
₹7,50,000	₹1,00,000	₹50,000

So, your Gross Total Income = ₹7,50,000 + ₹1,00,000 + ₹50,000 = ₹9,00,000. Now, suppose you invest ₹1,50,000 in a tax-saving fixed deposit with Unity Small Finance Bank.

As a result, your “net taxable income” will be calculated as ₹7,50,000 (₹9,00,000 − ₹1,50,000). This reduced income of ₹7,50,000 will now be taxed as per the applicable income tax slab, instead of ₹9,00,000.

Latest Unity Small Finance Bank Tax-Saving FD Interest Rate 2025

As of July 25, 2025, Unity Small Finance Bank offers a 7.25% per annum interest rate on its 5-year tax-saving FD for regular investors. Whereas, senior citizens receive a higher interest rate of 7.75% per annum for the same 5-year FD. This is 0.50% more than the rate offered to regular investors below the age of 60 years. Once booked, your money will grow at this fixed rate for the next five years.

Plan smart this year! Choose Unity Small Finance Bank tax-saving FD and enjoy a CRISIL A1+ rating + DICGC insurance + tax benefits. Book your FD online within minutes!

Who Can Open a Tax-Saving FD with Unity Small Finance Bank?

You can open a tax-saving fixed deposit with Unity Small Finance Bank if you are:

• A resident individual (any Indian citizen living in India)

or

• A member of a Hindu Undivided Family (HUF)
  
  

Corporations, partnerships, trusts, and other non-individual entities are not eligible to open a tax-saving FD. 

Start Your Unity Small Finance Bank Tax-Saving FD with GoldenPi Today!

Unity Small Finance Bank Tax-Saving FD is ideal for investors who want to save tax without taking any market risk. As of July 25, 2025, the bank offers 7.25% interest per annum for regular investors and 7.75% for senior citizens on a 5-year deposit. 

Concerned about safety? Unity Small Finance Bank holds a high CRISIL A1+ rating, and all its deposits (FDs, current account, savings account) are insured by DICGC up to ₹5 lakh. So, want to enjoy safety + tax savings? Don’t wait till March! Invest in Unity Small Finance Bank Tax-Saving FD now.