Traditional, Safe, Guaranteed Returns and Tax Benefits are some of the best ways to describe Fixed deposit, This investment has been in trend in India for decades, and most likely you have heard about it from your parents, uncles, aunts and grandparents as well. Fixed deposits are like a haven for investors who do not want to bear the risk and volatility on their money. This is the decades-old trump card for deposits seeking promising returns.
However, the world of savings, investments and deposits has evolved with stocks, bonds and many other instruments gaining popularity and offering much higher returns than fixed deposits. But investing in capital markets is associated with various risk factors, non-guaranteed returns and is subject to conditions that can be troubling for many investors, especially senior citizens.
Fixed deposits are favorable and better investments for senior citizens. FDs not only offer safe returns, but also enable the elderly to save up to Rs 1.5 lakh in tax under Section 80C. However, the tax benefit is mainly availed on deposits held for at least 5 years. Currently, all banks offer various benefits in FD schemes for senior citizens. However, the goal is mostly to choose an FD with a higher interest rate. With this, Yes Bank currently offers an additional rate of 0.75% over the normal rate on FDs for senior citizens. The interest rate on Yes Bank FDs is higher than that of major banks like SBI, HDFC Bank and ICICI Bank, especially on tenures of 3 to 7 years.
up to FD 2 crore, Yes Bank offers a rate of 7% to senior citizens for tenures of 3 to 10 years – which is an additional 0.75% as compared to the normal rate of 6.25%. The lender gives a rate of 3.75% to the aged people on a minimum tenure of 7 days to 14 days which is 0.50% higher than the normal rate of 3.5%. During the tenure, Yes Bank gives an additional rate of 0.5-0.75% to the elderly.
Also, in Yes Bank, an annual yield of 7.19% is offered to older people over a tenure of 3-10 years as against the normal rate of 6.40%.
On the other hand, for senior citizens, SBI offers a rate of 5.95% on tenures ranging from 3 years to less than 5 years and 6.30% on tenures ranging from 5 years and up to 10 years. SBI has introduced “SBI WeCare” deposits for senior citizens in the Retail TD segment, wherein the elderly have to pay an additional premium of 30 basis points in addition to the existing 50 basis points for ‘5 years and above’ on their retail TDs Will be done. duration only. However, this scheme is available till September 30, 2022.
Meanwhile, HDFC Bank and ICICI Bank offer 6.35% on FDs below 2 crore to senior citizens on tenure of more than 5 years and up to 10 years. Both the banks offer a rate of 5.95% on tenures ranging from 3 years 1 day to 5 years.
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