Fixed Deposits: For senior citizens who enjoy investing in fixed deposits, there is a goldmine. Seniors can now get three-year fixed-rate deposits (FDs) at interest rates as high as 8% from both public and private sector banks, according to data collated by BankBazaar.
Financial Planning for Seniors
The elderly should allocate a portion of their resources to fixed deposits, which guarantee interest payments on a regular basis and provide liquidity. You can utilise the money to create an emergency fund. Bank FD interest is taxed, but most older folks have a reduced tax slab, so if their other income is very little, their tax responsibility is limited or nonexistent.
RBI Data Reveals Focus on Fixed Deposits
Data from the Reserve Bank of India‘s financial year 2022 indicates that investors prefer to keep their money in fixed deposits at reputable private and public sector banks. FD investment in top commercial and public sector banks accounts for 76% of total bank deposits, according to the data. This is true even though smaller finance banks and private banks give greater interest rates to attract fresh deposits.
Interest Rates as the Primary Criterion
The interest rate of the top 20 banks (based on their total term deposit position as reported to the RBI as of March 31, 2022) is the primary criterion for determining these banks. Data as of October 20, 2023, on the websites of the relevant banks. Banks whose websites did not have data have not been taken into consideration. The data comprises older people’ (30-08) three-year deposits for sums under Rs 1 crore. The value is determined using interest compounding on a quarterly basis. Depending on the kind of term deposit account, there may be different minimum investment amounts.
YES Bank and IndusInd Bank Leading Among Private Banks
Senior citizens can get 8% interest on three-year fixed-rate deposits (FDs) from YES Bank and IndusInd Bank. It has the best interest rates among private banks. In three years, an investment of Rs. 1 lakh grows to Rs. 1.27 lakh.
Bank of Baroda’s 7.75% Three-Year Fixed-Rate Bonds
For older folks, Bank of Baroda is offering three-year fixed-rate bonds at 7.75 percent interest. It has the best interest rates among public sector banks. In three years, an investment of Rs. 1 lakh grows to Rs. 1.26 lakh.
Axis Bank’s Competitive Edge
Seniors can get a three-year fixed-rate deposit (FD) from Axis Bank at a 7.60 percent interest rate. In three years, an investment of Rs. 1 lakh grows to Rs. 1.25 lakh.
Top Choices for Seniors with 7.50% 3-Year FD Interest
Seniors can get three-year fixed-rate deposits (FDs) from HDFC Bank, ICICI Bank, and Punjab National Bank with interest rates of 7.50 percent. In three years, an investment of Rs. 1 lakh grows to Rs. 1.25 lakh.
Canara Bank’s 7.30% 3-Year FD
Seniors who purchase three-year fixed-rate deposits (FDs) from Canara Bank can earn 7.30 percent interest. In three years, an investment of Rs 1 lakh grows to Rs 1.24 lakh.
Bank of India’s 7.25% 3-Year FD
Senior folks can get 7.25% interest on three-year fixed-rate deposits (FDs) from Bank of India. In three years, an investment of Rs 1 lakh grows to Rs 1.24 lakh.
Federal Bank’s 7.10% 3-Year FD
Seniors can get interest rates of 7.10 percent on three-year fixed-rate deposits from Federal Bank. In three years, an investment of Rs 1 lakh grows to Rs 1.24 lakh.
RBI’s DICGC
Up to Rs 5 lakh in fixed deposit investments are guaranteed by the RBI subsidiary Deposit Insurance and Credit Guarantee Corporation (DICGC).
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