Home / Money / Personal Finance /  3 banks promising over 8% returns to senior citizens on 2-3 year fixed deposits

The Reserve Bank of India (RBI) announced the increase of the policy rate by 50 basis points to 5.4% at its MPC meeting in August 2022 to combat retail inflation, which had caused banks to raise interest rates on fixed deposits, causing good news among fixed income investors, particularly senior citizens. However, India's retail inflation, as measured by the consumer price index (CPI), increased to 7% in August from 6.71% in July, and the RBI may raise the repo rate by another 50 basis points at its forthcoming MPC meeting in September to keep inflation at tolerable range. Retail investors, particularly older persons, may now anticipate returns that outpace inflation in the face of rising interest rates on bank fixed deposits. Senior citizens can now obtain actual returns from their fixed deposit investments, since beating inflation by generating higher returns on investments is now possible for them. As a result, we've used three small finance banks as an example here that are providing rates of over 8% on fixed deposits for two to three years coupled with DICGC protection.

Utkarsh Small Finance Bank

Utkarsh Small Finance Bank raised its interest rates on fixed deposits of less than 2 Cr on August 12, 2022. Following the amendment, the bank is now offering senior citizens fixed deposits with maturities ranging from 7 days to 10 years at an interest rate of 4.75% to 7.00%. However, the bank is currently paying an interest rate of 8.25% on fixed deposits maturing in 700 days to 5 years. As a consequence, elderly persons seeking to invest in a fixed deposit for 2 to 3 years can now generate returns at Utkarsh Small Finance Bank that outperform inflation.

Utkarsh Small Finance Bank FD Rates
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Utkarsh Small Finance Bank FD Rates (utkarsh.bank)

North East Small Finance Bank

Effective from 16th September 2022, interest rates on fixed deposits of North East Small Finance Bank are in force. Following the revision, the bank is now offering an interest rate ranging from 3.75% to 7.00% on fixed deposits maturing in 7 days to 3650 Days. However, on fixed deposits maturing in 2 to 3 years or 730 days to 1095 days, the bank is promising an interest rate of up to 8.25% to senior citizens.

North East Small Finance Bank FD Rates
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North East Small Finance Bank FD Rates (nesfb.com)

Jana Small Finance Bank

Interest rates on fixed deposits at Jana Small Finance Bank are in effect as of June 15, 2022. Following the revision, the bank is now providing an interest rate bracket of 3.30–6.80 per cent for fixed deposits under 2 crore with maturities ranging from 7 days to 10 years. Elderly individuals will, however, get an interest rate of 8.05% on fixed deposits maturing in 2 years to 3 years and a maximum interest rate of 8.15% on term deposits maturing in 3 years to 5 years from Jana Small Finance Bank.

Jana Small Finance Bank FD Rates
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Jana Small Finance Bank FD Rates (janabank.com)
ABOUT THE AUTHOR

Vipul Das

Vipul Das is a Digital Business Content Producer at Livemint. He previously worked for Goodreturns.in (OneIndia News) and has over 5 years of expertise in the finance and business sector. Stocks, mutual funds, personal finance, tax, and banking are among his specialties, and he is a professional in industry research and business reporting. He received his bachelor's degree from Dr. CV Raman University and also have completed Diploma in Journalism and Mass Communication (DJMC).
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