Deposits account for Senior citizens surged to 150 percent: SBI report
The recent report of SBI has shown the exclusive soar in the FD rates deposits of Senior citizens.
New Delhi: Reliable and accessible fixed deposit rates offered by banks are illustrated to be officially in public welfare mode. The monetary redemption is not a cup of tea for investors if investment criteria is not cleared with lenders.
The banking industry offers the best ways to secure your money by investing in fixed deposits which not only helps to save money but also helps to earn a substantial interest in it.
The recent report of SBI has shown the exclusive soar in the FD rates deposits of Senior citizens.
Read Also : Mines Ministry Inks MoU with Shakti Sustainable Energy FoundationSenior citizens are shown to be the biggest source of stable deposits for the banking industry. The stunning addition of 50 basis points of interest rate and higher deposit insurance cover ensures the tremendous returns offered for old-aged people by non-convertible debentures issued by companies.
According to the State Bank of India’s economic research department’s (ERD) estimates, the deposit accounts of senior citizens surged about 81 per cent to close to 7.4 crore as of December-end 2023 from around 4.1 crore in 2018.
Simultaneously, senior citizens’ aggregate deposits climbed up about 150 per cent to Rs 34.367 lakh crore as of December-end 2023 from Rs 13.724 lakh crore in 2018.
Read Also : THDC and UJVNL Joint Venture, TUECO inks MoU with Nagar Nigam HaridwarAccording to observations noted by the Report:
The ERD data shows, the average amount per senior citizen term deposit account increased about 39 per cent to Rs 4,63,472 as at December-end 2023 from Rs 3,34,243 in 2018. Banks’ deposit insurance cover was increased from Rs 1 lakh to Rs 5 lakh with effect from February 4, 2020.
Out of the 7.4 crore senior citizens’ term deposit accounts, almost 7.3 crore accounts are of the size of up to Rs 15 lakh, as per the ERD’s estimates. By assuming 7.5 per cent interest on these deposits, Rs 2.6 lakh crore interest has been earned by senior citizens.
In recognition of the challenges faced by senior citizens -- medical and other care needs growing exponentially as nuclearization of families gains velocity, the Government has ensured superior interest offerings through specialised schemes like SCSS (8.2 per cent rate of interest/RoI with outstanding of Rs 1.62 lakh crore) as also card rates of banks having 50-75 bps markup for this segment.
Several factors that influence the deposit accounts is the increase in deposit rates, the higher interest rate differential for senior citizens and the special deposit schemes for senior citizens (for example WE-CARE by SBI), along with the Government initiatives on Senior Citizen Savings Scheme (SCSS), Mahila Samman Savings Certificate and so on.
Read Also : NTPC Farakka Gears Up for Girl Empowerment Mission Workshop 2024News Must Read
- THDC and UJVNL Joint Venture, TUECO inks MoU with Nagar Nigam Haridwar
- IREDA bags Navratna status from government
- EIL and Mongol Refinery resumed external construction activities at Mongol Refinery Project site
- World's Largest Airport Coming; 5 times bigger than Dubai International Airport
- NTPC inks pact with RINL for supply of limestone
- RBL Bank Q4 Audited Financial results, FY24
- NCL General Manager (Finance) D Sunil Kumar recommended for SECL Director (Finance)
- Bank of Maharashtra Q4 results, Net Profit increased by 44.95 percent to Rs 1,218 crore
- Axis Bank Overtakes Kotak Mahindra Bank to Become India's Fourth Most Valued Lender
- LIC cuts stakes in major PSU stocks