Home / Money / Personal Finance /  4 private banks offering inflation-beating returns on FDs for senior citizens

Retail investors in fixed deposits gain the most whenever a repo rate is raised since deposit interest rates start to climb. An illustration of this is the repo rate increase of 50 basis points to 4.90 per cent that the RBI implemented during its June MPC meeting. It is best to seek the bank providing the highest interest rates compared to its category because investors in fixed deposits are aware that interest rates are on the rise. Investors in fixed deposits should take into account that, according to statistics from the National Statistical Office (NSC), the Consumer Price Index (CPI) inflation rate moved down to 7.04 per cent in May 2022 from an 8-year high of 7.79 per cent in the previous month April. And this shows that, if kept invested for a long time, fixed deposit investors, particularly older persons, can now obtain returns on their fixed deposits that beat inflation.

Bandhan Bank

Bandhan Bank increased its interest rates on fixed deposits under 2 Cr on July 4, 2022. Following the modification, the bank is now providing elderly people with fixed deposits ranging from 7 days to 10 years at rates between 3.75 per cent and 6.35 per cent. The bank is providing senior citizens with a maximum interest rate of 7.25 per cent on deposits maturing in 2 years to less than 5 years, which is 0.21 per cent more than the current inflation rate.

Bandhan Bank
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Bandhan Bank (bandhanbank.com)

DCB Bank

The bank increased its interest rates on fixed deposits under 2 Cr on June 22, 2022. Following the modification, the bank is now providing fixed deposits with terms ranging from 7 days to 120 months at a rate between 5.30 per cent and 7.10 per cent to older adults. On deposits maturing in 18 to 120 months, elderly persons will get a maximum rate of 7.10 per cent, which is 6 basis points higher than the inflation rate.

DCB Bank FD Rates
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DCB Bank FD Rates (dcbbank.com)

Yes Bank

Yes Bank recently changed the interest rates on fixed deposits below 2 crore on June 18, 2022. The bank is currently giving older people 3.75 per cent to 7.25 per cent interest on deposits with maturities ranging from 7 days to 10 years. Whereas, the bank offers a maximum rate of 7.25 per cent on deposits with maturities between three and ten years, which is 0.21 per cent higher than the inflation rate for older residents.

Yes Bank FD Rates
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Yes Bank FD Rates (yesbank.in)

RBL Bank

RBL Bank increased interest rates on fixed deposits below 2 Cr on June 8, 2022. Currently, the bank provides fixed deposits maturing in 7 days to 240 months at 3.75 per cent to 6.25 per cent to older persons. RBL Bank gives senior citizens a maximum interest rate of 7.15 per cent on deposits that mature in 15 months, which is 0.11 per cent or 11 basis points higher than inflation.

RBL Bank FD Rates
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RBL Bank FD Rates (rblbank.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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