In its July bulletin, the Reserve Bank of India stated that there are signs that inflation may be peaking but added that this prediction may be premature. Consumer price index (CPI) data show that inflation, which is currently over the MPC’s tolerance band, was 7.01 percent in June compared to 7.04 percent in May and 7.79 percent in April.
What is the latest inflation rate in India?
The Wholesale Price Index’s (WPI) annual percentage change in value is known as inflation. It accurately estimates how much a basket of goods and services’ prices vary over the course of a year. In India, the WPI is used as the benchmark for calculating inflation. For June 2022, the retail inflation rate is 7.01 percent.
Inflation beating FD interest rates
Given that interest rates are rising, it is best to ladder your fixed deposits and make shorter-term investments so you can reinvest them when they mature and earn bigger returns. Laddering will help address liquidity concerns and give you periodic regular returns.
Note that these bank fixed deposit interest rates are for balances below Rs 2 crore and for regular citizens.
Suryoday Small Finance Bank offers interest rates ranging from 3.25 percent to 7.49 percent for tenures ranging from 7 days to 10 years. This bank offers 7.49 percent on fixed deposit for 999 days.
For deposits of less than six months, simple interest is paid upon maturity. Every quarter, cumulative interest, is determined and added to the principal so that interest is also paid on interest earned the previous quarter.
In the case of a monthly deposit plan, interest is computed for the quarter and paid on a monthly basis at a discount to the Standard FD Rate.
Utkarsh Small Finance Bank
Utkarsh Small Finance Bank offers interest rates ranging between 3 percent to 7.25 percent for tenures between 7 days to 10 years. The bank offers the highest interest rate of 7.25 percent for tenure between 700 days to 1000 days.
Interest will be calculated on a simple interest basis at maturity for Term Deposits with tenures under 181 days. In accordance with RBI guidelines, interest on term deposits may be paid for periods shorter than a quarter (monthly payout). No interest is paid on deposits that are prematurely withdrawn within seven days of the deposit date.
ESAF Small Finance Bank
ESAF Small Finance Bank offers interest rate ranging between 4 percent to 7.25 percent for tenure between 7 days to 10 years. The bank offers the highest interest rate of 7.25 percent for tenure between 2 years to less than 3 years.
Ujjivan Small Finance Bank offers interest rates ranging between 2.90 percent to 7.20 percent for tenure between 7 days to 120 months. The bank offers the highest interest rate of 7.20 percent for tenure 990 days and 42 months and 1 day to 60 months.
Jana Small Finance Bank
Jana Small Finance Bank offers interest rate ranging between 2.50 percent to 7.35 percent for tenure between 7 days to 10 years. The bank offers the highest interest rate of 7.35 percent for tenure between 3 year to less than 5 years and 7.25 percent for tenure between 1 year to 3 years.
(Interest rates as on July 19, 2022)