Category: Finance & Money Matters

16 Feb 2023 16:58

Joined:	16/01/2023
Level:	Gold
Points:	1709

Points:	5

Depositors should sieze the moment now

The Senior citizens like me are a bit pleased that a private sector bank, operating from a small town in Tamil Nadu, has offered a 8.5 percent for FDs fir 300 days. These good times are unlikely to last. The Government of India and the RBI will soon go back to the good old days of low interest rates on loans. And when that happens, we will go back to the same 6 percent that most banks would offer for our hard earned savings.

Sieze the moment and when the deposit rates for 7 or ten year RDs are going up, just park small amounts. Senior citizens lead frugal lives. Inflation is simply eating up every single human being, particularly the Senior citizens.

So, the long term RDs will come in handy when time flies and the deposits mature. The not so well known NBFCs are always very dangerous and best avoided.

#25624

17 Feb 2023 07:29

Joined:	21/07/2021
Level:	Gold
Points:	1199

Points:	4

Yes, the interest rates are now increasing upwards in most of the banks and some private banks are offering more than what other nationalised banks are offering. This is definitely a great opportunity for the senior citizens who were getting only 5 to 6% interest on their FDs on an average in recent times.
It make sense to open a new FD under these new rates and even if there is an old FD, it can be closed prematurely and then the proceeds can be invested in a new FD for the longest period possible. There will be some loss in closing the FD prematurely but that will be compensated by the new FD within no time.

#25626

17 Feb 2023 13:29

Joined:	14/07/2021
Level:	Gold
Points:	566

Points:	5

Yes, I agree that it is a good time to put in some money in an FD that is offering higher returns after many years of low interest and stagnation. You should also check out Post Office Schemes like the National Savings Certificate and KVP. If you have, for example, 75k and would like to invest it at one go, you could get 1lakh approx. with NSC after five years. Such schemes are good if you don't want to only park your savings in something like PPF.

Recurring Deposits (RDs) are also excellent for savings for the long-term. When an RD matures, you will have a nice lump sum and you can start another RD afresh. I think RDs are good because a fixed monthly amount will go into it. It is a self-imposed finance discipline as it will likely curb the tendency to needlessly spend your savings for inconsequential things!


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Depositors should sieze the moment now

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