Due to the after-effects of the Covid-19 pandemic-related liquidity infusion and the Russia-Ukraine war-induced hyperinflation, the repo rate hike momentum is gaining strength.
For June 2022, the retail inflation rate in India is 7.01%. This shall be reflected in the FD interest rates soon. However, there is a delay in the transmission of the benefits of a rate hike from the banks to the depositors.
Now, is a good time to park your money in bank FDs. But, it is safe to say this is not the best time to open a long-term FD or renewal a big FD.
In short, it will be a wise strategy to book an FD with a tenure of 6 months to one year to earn maximum benefits from the hike during the investment period. You will get a better rate at the time of FD renewal, and then, you can reinvest them and earn bigger returns.
Now, let us check out the top 5 bank FDs you can trust to fight the inflation battle for you and help you reap benefits in the current interest rate scenario.
1. Suryoday Small Finance Bank
Suryoday Small Finance Bank revised its fixed deposit interest rate recently. As of now, an FD in the Suryoday Small Finance Bank will garner an interest rate ranging from 3.25% to 6.75% on deposits of less than ₹2 Crore for the general public.
In the same scenario, senior citizens are offered an FD interest rate of 3.75% up to 7.20% on their deposits.
Here are the latest interest rates on FDs in Suryoday Small Finance Bank, effective from June 06, 2022, for FDs less than ₹2 Crores.
| Period | Interest Rate (Per Annum) | Senior Citizen Rate (Per Annum) |
| 7 days to 14 days | 3.25% | 3.75% |
| 15 days to 45 days | 3.25% | 3.75% |
| 46 days to 90 days | 4.25% | 4.75% |
| 91 days to 6 months | 4.75% | 5.25% |
| Above 6 months to 9 months | 5.25% | 5.75% |
| Above 9 months to less than 1 Year | 5.75% | 6.25% |
| 1 Year to 1 Year 6 Months | 6.50% | 7.00% |
| Above 1 Year 6 Months to 2 Years | 6.50% | 7.00% |
| Above 2 years to 998 days | 7.00% | 7.50% |
| 999 Days | 7.49% | 7.99% |
| 1000 days to 3 Years | 7.00% | 7.50% |
| Above 3 Years to less than 5 Years | 6.50% | 7.00% |
| 5 Years | 6.75% | 7.25% |
Source: https://www.suryodaybank.com/deposits/fixed-deposit/rate-of-interest
2. Utkarsh Small Finance Bank
One of the popular smaller banks in India, Utkarsh Small Finance Bank, offers an interest rate of 4.00% to 7.50% for regular citizens on deposits less than ₹2 Crore. The senior citizens are offered an FD interest rate of 4.75% to 8.25% in the same case.
Here are Utkarsh Small Finance Bank’s interest rates on fixed deposits effective from August 12, 2022, for FDs less than ₹2 Crores.
| Period | Interest Rate (Per Annum) | Senior Citizen Rate (Per Annum) |
| 7 Days to 45 Days | 4.00% | 4.75% |
| 46 Days to 90 Days | 4.25% | 5.00% |
| 91 Days to 180 Days | 5.00% | 5.75% |
| 181 Days to 364 Days | 6.00% | 6.75% |
| 365 Days to 699 Days | 7.15% | 7.90% |
| 700 Days upto 5 Years | 7.50% | 8.25% |
Source: https://www.utkarsh.bank/uploads/home_sidebar_form/Fixed_Deposits_w_e_f_August_12_2022.pdf
3. ESAF Small Finance Bank
ESAF Small Finance Bank offers an interest rate of 4.00% to 5.75% for a deposit amount of less than ₹2 Crores to non-senior citizens, whereas an interest rate of 4.50% to 6.25% is offered to senior citizens on their bank FDs.
Here are ESAF Small Finance Bank’s interest rates on fixed deposits effective from June 13, 2022, for FDs less than ₹2 Crores.
| Period | Interest Rate (Per Annum) | Senior Citizen Rate (Per Annum) |
| 7 days to 14 days | 4.00% | 4.50% |
| 15 days to 59 days | 4.50% | 5.00% |
| 60 days to 90 days | 5.00% | 5.50% |
| 91 days to 182 days | 5.25% | 5.75% |
| 183 days to 1 year | 5.50% | 6.00% |
| 1 year 1 day to less than 2 years | 6.60% | 7.10% |
| 2 years to less than 3 years | 7.25% | 7.75% |
| 3 years to less than 4 years | 5.75% | 6.25% |
| 4 years to less than 5 years | 5.75% | 6.25% |
| 5 years to 10 years | 5.25% | 5.75% |
Source: https://www.esafbank.com/interest-rates/
4. Ujjivan Small Finance Bank
Ujjivan Small Finance Bank has revised the FD interest rates recently, and the bank now offers attractive interest rates on fixed deposits. For a deposit amount less than ₹2 Crores, the general public is now offered an interest rate of 3.75% to 7.50% on FDs. For the same maturity period, senior citizens will now get an interest rate of 4.50% to 8.25%.
Here are Ujjivan Small Finance Bank’s interest rates on fixed deposits effective from 9th August 2022, for FDs less than ₹2 Crores.
| Period | Interest Rate (Per Annum) | Senior Citizen Rate (Per Annum) |
| 7 Days to 29 Days | 3.75% | 4.50% |
| 30 Days to 89 Days | 4.25% | 5.00% |
| 90 Days to 179 Days | 4.75% | 5.50% |
| 6 Months | 5.25% | 6.00% |
| >6 Months to <9 Months | 5.50% | 6.25% |
| 9 Months | 5.75% | 6.50% |
| >9 Months to <12 months | 6.50% | 7.25% |
| 12 Months | 7.00% | 7.75% |
| 12 Months and 1 Day to 524 Days | 7.20% | 7.95% |
| 75 Weeks (525 Days) | 7.50% | 8.25% |
| 526 Days to 18 Months | 7.20% | 7.95% |
| 18 Months and 1 Day to < 24 Months | 7.00% | 7.75% |
| 24 Months | 7.10% | 7.85% |
| 24 Months 1 Day to 989 Days | 6.50% | 7.25% |
| 990 Days | 7.50% | 8.25% |
| 991 Days to 36 Months | 6.50% | 7.25% |
| 36 Months 1 Day to 42 Months | 6.25% | 7.00% |
| 42 Months 1 Day to 60 Months | 7.20% | 7.95% |
| 60 months 1 Day to <75 Months | 6.00% | 6.75% |
| 75 Months | 7.50% | 8.25% |
Source: https://www.ujjivansfb.in/support-interst-rates
5. Jana Small Finance Bank
Jana Small Finance Bank offers an interest rate of 2.50% to 7.25% for a deposit amount of less than ₹2 Crores to non-senior citizens, whereas an interest rate of 3.30% to 8.05% is offered to senior citizens on their FDs.
Here are Jana Small Finance Bank’s interest rates on fixed deposits effective from June 15, 2022, for FDs less than ₹2 Crores.
| Period | Interest Rate (Per Annum) | Senior Citizen Rate (Per Annum) |
| 7-14 days | 2.50% | 3.30% |
| 15-60 days | 3.00% | 3.80% |
| 61-90 days | 3.75% | 4.55% |
| 91-180 days | 4.50% | 5.30% |
| 181-364 days | 5.50% | 6.30% |
| 1 Year [365 Days] | 7.00% | 7.80% |
| > 1 Year – 2 Years | 7.25% | 8.05% |
| >2 Years – 3 Years | 7.25% | 8.05% |
| > 3 Year – < 5 Years | 7.35% | 8.15% |
| 5 Years [1825 Days] | 7.25% | 8.05% |
Source: https://www.janabank.com/images/PDF/Interest-Rates-for-Fixed-Deposits.pdf
Conclusion
Now that you know how the bank FDs are fighting inflation, you can choose a bank of your choice to open an FD account. Make sure you read the terms and conditions of the fixed deposits before investing to be on the safer side.