Interest rates

Fd rates: Bank FDs with higher interest rates than RBI floating rate bonds

After the Reserve Bank of India started raising the repo rate, many banks raised interest rates on fixed deposits, passing the benefit on to customers. However, only a few banks raised interest rates above 7%, and even fewer exceeded 7.15%, which is the interest rate on RBI’s floating rate notes.

RBI Floating Rate Bond Interest Rates

The current interest rate on the RBI Floating Rate Note is 7.15% (6.80% + 0.35%). Every six months, the interest rates on these bonds are reset/expected. According to the RBI press release, “As a result, the Coupon Rate on FRSB 2020 (T) for the period July 1, 2022 to December 31, 2022 and payable on January 1, 2023 remains at 7.15% (6.80% +0.35%), unchanged compared to the previous half. The bonds have a fixed term of seven years.

Here is a quick compilation of FD banks that offer higher interest rates than RBI Bond.

Utkarsh Small Finance Bank

Utkarsh offers an interest rate of 7.25% on a term of 700 days to 5 years for ordinary citizens and 7.75% for senior citizens.

Ujjivan Small Finance Bank

Ujjivan Small Finance Bank offers a higher interest rate than RBI Savings Bonds over tenor over 12 months and 1 day to 524 days, and 42 months 1 day to 60 months, the interest rate offered is 7.20%. For terms of 75 weeks (525 days) and 990 days and 75 months, the interest rate offered is 7.50%.

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Small Corporate Bank ESAF

ESAF Small Finance Bank offers an interest rate of 7.25% on terms of 2 years to less than 3 years for ordinary citizens and 7.75% for senior citizens.

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Fincare Small Corporate Bank

Fincare Small Finance Bank offers an interest rate of 7.25% on a 750 day term for ordinary citizens and 7.50 on a 1000 day term for ordinary citizens.

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