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Senior Citizen Fixed Deposits: SBI Vs ICICI Vs Axis Vs HDFC Vs Small Finance Banks; Get up to 9.2% go back

Bank Savings

Senior Citizen Fixed Deposits: SBI Vs ICICI Vs Axis Vs HDFC Vs Small Finance Banks; Get up to 9.2% go back


Bank fixed deposits have continually been one of the retail buyers’ most famous investment selections. This is mainly because of the assured returns, particularly for senior residents, as they have a low-danger appetite, and expectancies of returns change with age. Most people retire at this age, and most face the project of no longer outliving the assets they’ve gathered over time. Several monetary gadgets offer unique blessings to senior citizens. For instance, monthly earnings schemes, extra tax exemptions, and higher assured investment returns.


Other than top banks, which include Axis, SBI, ICICI, and HDFC Bank, small finance banks have started imparting and highlighting the high deposit rates they offer during the last few years. The higher interest charges are provided using small finance banks’ attraction to maximum investors. For example, Jana Small Finance Bank is offering a fee of nine.2 in step with a cent on its fixed deposits. The State Bank of India then reveals a rate of seven. Five percent for deposits between tenures of one year to less than two years, and senior citizens get a 50 bps better charge.

Like commercial banks, small finance banks are regulated using the Reserve Bank of India (RBI). Industry professionals say the principal purpose of having separate small finance banks is to amplify get entry to monetary offerings to the underbanked sections of society, such as low-profit families, small corporations, migrant workers, and other unorganized quarter entities.

These banks offer almost everything an industrial financial institution gives, including essential banking services, accepting deposits, and lending. Experts say to increase their purchaser base and acquire stakes, a number of these small finance banks are offering a higher deposit charge. These small finance banks additionally use the money from the promises to lend cash to their debtors, like other banks. So, while choosing any funding product, one must also make sure to test the financial institution’s customer service, and must no longer simplest, don’t forget the returns.

Similar to industrial banks, small financial savings banks, deposits up to Rs 1 lakh are insured through the DICGC (Deposit Insurance and Credit Guarantee Corp). The subsidiary of RBI has a list of insured banks on its internet site, and presently, seven small finance banks are indexed on its internet site.

Experts suggest that one must restrict their exposure to regular deposits from small finance banks, as these banks have been in operation for a short period of most effectively. Unlike legacy banks in the public and non-public sectors, they have many years of musical files managing deposits and loans. Financial advisors add that traders must invest the handsiest part of their financial savings in small banks’ deposits and diversify their portfolios.
Bank Fixed Deposits

In India, regular bank deposits are the maximum favored funding option. Fixed deposits are considered more secure than investments in fairness, as most of those buyers make investments a big bite in their money, and it also comes with a confident go back in the form of interest.

Most banks provide better hobby charges to senior residents, as compared to most people, on fixed deposits. For instance, banks usually offer a 0.50 step with a cent higher hobby rate to senior citizens than regular people. State Bank of India, at the five to ten-year fixed deposit, offers 7.10 in step with the cent, ICICI Bank gives 7.50 consistent with the cent, and Axis Bank provides 7. Five to 7. Seventy-five in keeping with cent, and HDFC Bank provides 7 step cent to senior citizens.

Eula Boone

I have written professionally since 2010 and have been an investor since 2015. My finance blog, economydiva.com, is one of the most visited blogs in the world, with more than 3 million readers a month. I love sharing what I know about investing, saving, and managing money and providing practical tips on how to be a smart and savvy money manager.