The Reserve Bank of India (RBI) announced the increase of the policy rate by 50 basis points to 5.4% at its MPC meeting in August 2022 to combat retail inflation, which had caused banks to raise interest rates on fixed deposits, causing good news among fixed income investors, particularly senior citizens. However, India’s retail inflation, as measured by the consumer price index (CPI), increased to 7% in August from 6.71% in July, and the RBI may raise the repo rate by another 50 basis points at its forthcoming MPC meeting in September to keep inflation at tolerable range. Retail investors, particularly older persons, may now anticipate returns that outpace inflation in the face of rising interest rates on bank fixed deposits. Senior citizens can now obtain actual returns from their fixed deposit investments, since beating inflation by generating higher returns on investments is now possible for them. As a result, we’ve used three small finance banks as an example here that are providing rates of over 8% on fixed deposits for two to three years coupled with DICGC protection.