Interest rates

Inflation-Beating FD Yields: These Banks Offer Senior Citizens FD Interest Rates Above 7%

Inflation has become a sticking point not only for policymakers and businesses, but also for the common man. Along with rising commodity and other commodity costs, return on investment is also taking a hit.

Although term deposit interest rates have been at low levels for a decade, due to the rise in RBI policy rates, banks have slowly started to raise FD interest rates. Some banks even offer interest rates higher than the level of inflation on certain terms for senior citizens. Banks offer higher interest rates on time deposits to seniors.

What is the latest inflation rate in India?

The annual percentage change in the Wholesale Price Index (WPI) is known as inflation. It accurately estimates the price change of a basket of goods and services over the course of a year. In India, the WPI is used as a benchmark for calculating inflation. For June 2022, the retail inflation rate is 7.01%. Also Read: These 5 Bank FDs Offer Inflation-Beating Returns

Here’s a look at a few banks that offer inflation-beating FD returns for seniors.



Ujjivan Small Finance Bank offers interest rates of 7.30% for terms of 18 months and 1 day to less than 24 months, and 7.70% for terms of 15 months and 1 day to 18 months. The bank offers the highest interest rate of 7.20% for a 24 month term, from 1 day to 989 days, and 7.80% for a 24 month term.

The bank offers an interest rate of 7.40% for terms of 990 days and 42 months, from 1 day to 60 months. The table below is for ordinary citizens, and for seniors add 0.50 to the rates below.

Utkarsh Small Finance Bank

For terms of 700 to 1000 days, the bank offers the highest interest rate of 7.75%. It provides for 7.40% for an occupation period ranging from 365 to 699 days and 7.25% for an occupation period ranging from 1,001 to 5 years.

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Small Financial Banks of Suryodaya

The bank offers the highest interest rate of 7.99% for a term of 999 days. Suryodaya offers 7.50% on terms ranging from more than 2 years to 998 days and from 1000 days to 3 years. For 5 years, the bank offers an interest rate of 7.25%.

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Small Corporate Bank ESAF

The bank offers the highest interest rate of 7.75% for terms of two to three years. The bank offers 7.10% over a period ranging from 1 year, 1 day to less than 2 years.

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Fincare Small Corporate Bank

Fincare Small Finance Bank offers an interest rate of 7.50% for a term between 59 months and 66 months and 36 months 1 day to 42 months. Banks offer interest rates of 7.25% on terms ranging from 42 to 59 months.



The bank offers the highest interest rate of 7.50% for a term of 888 days. It provides 7.40% over a period ranging from 889 days to 3 years. The bank offers an interest rate of 7.10% for terms ranging from one year to 18 months. This table is for ordinary citizens, and for seniors add 0.50 to the rates below.

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The bank offers the highest interest rate of 7.40% for terms of 24 to 45 months and 60 to 120 months. It offers 7.10% on terms ranging from 12 months and 1 day to 15 months.

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(Rate as of July 21, 2022; source: bank websites)