After the RBI started raising the repo rate, many banks raised their fixed deposit rates, passing on the gains to customers. However, only a handful of banks have raised rates above 7%, and even fewer have raised rates above 7.15%, which is the rate on RBI’s floating-rate bonds.

The current interest rate on RBI floating rate bonds is 7.15% (6.8% +0.35%) Every six months, the rate on these bonds is reset/previewed. According to an RBI press release, “As a result, the coupon rate for FRSB 2020 for the period from 1 July 2022 to 31 December 2022 remains at 7.15% (6.8% +0.35%), which is the same as in the first half of the year. “The bond has a fixed term of seven years.

Here is a quick compilation of bank FDs that offer higher interest rates than RBI bonds.

Utkarsh Small Finance Bank
Utkarsh offers 7.25% interest rates from 700 days to 5 years for ordinary citizens and 7.75% for senior citizens.

Ujjivan Small Finance Bank
Ujjivan Small Finance Bank offers higher interest rates than RBI savings bonds, with maturities ranging from 12 months 1 day to 524 days and 42 months 1 day to 60 months, with an interest rate of 7.2%. For 75-week (525-day) and 990-day, and 75-month terms, the interest rate offered is 7.5%.

ESAF Small Finance Bank
ESAF Small Finance Bank offers regular citizens 7.25% interest rates for terms of 2 to less than 3 years and 7.75% seniors interest rates.

Fincare Small Finance Bank
Fincare Small Finance Bank offers regular citizens 7.25% for a 750-day term and 7.5 for a 1000-day term.