Mumbai: After the lockdown, the Reserve Bank of India has cut interest rates drastically to bail out the economy. This has brought some relief to the debt burdened businessmen and personal loan holders, but the investors are losing money, who earn income by investing their savings in fixed deposit schemes (FDs) of banks. In such a situation, these investors are looking for other options for safe investment. For these, small savings schemes of the post office i.e. India Post Small Saving Schemes are the safest option. Although India Post’s rates have also come down due to lower interest rates across the country, but still India Post is giving up to 1.40% more returns in its schemes as compared to banks.
The deposit interest rates of almost all public and private banks have come down to a minimum level of just 3.5% to 6.20%. SBI is offering a minimum of 4.4% and a maximum of 5.40% interest on deposits ranging from 6 months to 10 years. However, for senior citizens, SBI gives higher returns from 50 to 80 basis points. Similarly, ICICI Bank is giving interest from 3.5% to 5.5% and more interest is payable up to 80 basis points for senior citizens. HDFC Bank is also offering minimum 4.4% and maximum 5.40% interest on deposits of various duration for 6 months to 10 years. HDFC offers up to 75 basis points more interest to senior citizens on their deposits.