For the first time in the last three years, senior citizens are getting 8% or more returns on fixed deposits. Hence many people are turning to their banks to review the existing FDs.
At the peak of the pandemic, rates fell to 5.5 per cent due to excess liquidity. Last month, the government had increased the returns on the Senior Citizens Savings Scheme (SCSS). Rates are back at the 8 percent level after falling to 7.4 percent during the pandemic. Hence the difference between SCSS and FD has narrowed down.
According to a TOI report, Gaurav Gupta, founder and CEO of lending platform Money Wide, said, “Breaking an existing FD can be beneficial for some customers who have invested in FDs and do not face penalty for premature withdrawal.” Is.”
Non-banking companies are also offering attractive returns these days. HDFC’s ‘Sapphire’ scheme offers an interest rate of up to 7.6 per cent. This company provides high returns if the deposit is done online if its investors are shareholders.
Fixed Deposits (FDs) are commonly used as investment vehicles. The repo rate has been increased from 5.9% to 6.25%, resulting in the fifth consecutive increase since May last year. As India’s annual retail price inflation drops to 5.88% by November 2022, investors can now enjoy returns from banks that beat inflation.
Read this also | Government hikes interest rates on Small Deposits, NSC, Post Office Deposits from January 1; No change in PPF