List of banking institutions that give both ordinary and senior citizens’ returns that outperform inflation

Even when interest rates on fixed deposits rise, the majority of banks, both public and private, continue to give returns that are lower than the rate of inflation. To earn a considerable return, look for a fixed deposit investment that can exceed inflation, which fell slightly in June to 7.01 percent from 7.04 percent the previous month.

If debt investors believe that fixed deposits are a safe way to grow wealth, they should look into the fixed deposits offered by small financial institutions, which not only provide returns that are above inflation but are also DICGC-insured. If investors of all ages seek fixed-deposit returns that outperform inflation, they might consider the five tiny financial institutions mentioned below.

Fixed-income retail investors have benefited the most from rising repo rates since deposit interest rates began to rise. The RBI’s implementation of a 50 basis point repo rate rise to 4.90 percent during the June MPC meeting is an example of this.

Because fixed-income investors are aware that interest rates are rising, it is advisable to seek the bank with the highest interest rate relative to its category.

Fixed-income investors should be aware that the Consumer Price Index (CPI) inflation rate has fallen from an 8-year high of 7.79 percent in April to 7.04 percent in May 2022, according to National Statistical Office data (NSC). And this illustrates that fixed deposit investors, particularly older individuals, may now get returns on their fixed deposits that beat inflation if held for an extended length of time.

Ujjivan Small Finance Bank,

Currently, the bank is giving a 7.20 percent inflation-beating return on fixed deposits of less than 2 crore maturing in two distinct tenors, 990 days and 42 months (1 day to 60 months, respectively). Senior folks will receive a 0.50 percent higher interest rate. The bank’s interest rates were last changed on June 13, 2022.

Jana Small Finance Bank

Jana Small Finance Bank currently offers inflation-beating rates of 7.25 percent to 7.35 percent to the general public, while yields of 8.05 percent to 8.15 percent are available to the elderly. Deposits maturing in 1 to 5 years will also help regular consumers and the elderly, as they currently outperform inflation.

ESAF Small Finance Bank

ESAF Small Finance Bank’s fixed deposit interest rates were last updated on May 13, 2022. Following the change, the bank now offers a maximum interest rate of 7.25 percent to the general public and 7.75 percent to senior citizens on deposits due in two years or less.

Suryoday Small Finance Bank

Suryoday Small Finance Bank last altered its fixed deposit interest rates on June 6, 2022, and as a consequence, the bank is now offering customers returns that surpass inflation, at 7.49% for the general public and 7.99% for senior citizens on deposits due in 999 days.

Utkarsh Small Finance Bank,

The banks’ fixed deposit interest rates were last changed on May 9, 2022. Following the change, Utkarsh Small Finance Bank now offers deposits maturing in 700–1000 days that will exceed inflation, yielding 7.25 percent for the general public and 7.75 percent for the elderly.

Bandhan Bank

On July 4, 2022, Bandhan Bank raised its interest rates on fixed deposits under 2 crore. After the change, the bank is now offering fixed deposits to senior citizens with terms ranging from 7 days to 10 years at rates between 3.75 percent and 6.35 percent. On deposits due in 2 years or less than 5 years, the bank offers senior people a maximum interest rate of 7.25 percent, which is 0.21 percent more than the current inflation rate.

DCB Bank

On June 22, 2022, the bank raised its interest rates on fixed deposits under 2 CR. After the change, the bank is now offering older individuals fixed deposits with maturities ranging from 7 days to 120 months at a rate between 5.30% and 7.10%. Seniors will get a maximum rate of 7.10% on deposits with maturities between 18 and 120 months, which is 6 basis points more than the inflation rate.

Yes Bank

On June 18, 2022, Yes Bank reduced the interest rates on fixed deposits under Rs. 2 crore. The bank presently offers deposits with maturities ranging from 7 days to 10 years to elderly customers at a rate of 3.75 to 7.25 percent. As opposed to this, the bank offers a maximum rate of 7.25 percent on deposits with maturities of three to ten years, which is 0.21 percent greater than the inflation rate for senior citizens.

RBL Bank

RBL Bank increased the interest rates on fixed deposits under 2 Cr on June 8, 2022. Fixed deposits with maturities ranging from 7 days to 240 months are now available to seniors, with rates ranging from 3.75 percent to 6.25 percent. RBL Bank gives seniors a maximum interest rate of 7.15 percent on deposits maturing in 15 months, which is 0.11 percent, or 11 basis points, more than inflation.