In sum, Unity Small Finance Bank provides a competitive FD interest rate, but it is essential to take note of the premature withdrawal penalty before making an investment decision. This penalty serves as a deterrent for early withdrawals and helps the bank sustain its profitability. Nonetheless, should you decide to withdraw your FD before its maturity date, a premature penalty of one per cent will be levied on the interest accrued during the period the deposit was held. Unity Small Finance Bank presents an enticing interest rate of 9.50 per cent for Fixed Deposits maturing in 1001 days.