In today’s time, saving your money and helping it grow is one of the best financial decisions you can make, as these will give you long term benefits, it doesn’t matter whether you are a senior citizen or part of the general public.
Although, senior citizens mostly trust fixed deposits (FD) as it gives them security in their old age and now, the general public is also stepping towards it. A fixed deposit can be a great option for everyone. It not only keeps your money safe but also gives you guaranteed returns in the form of interest after a certain period.
So, if you are someone looking to save your money while also earning a good return , an FD can be a smart choice. In this article, will take a simple example to understand how banks like State Bank of India (SBI), Bank of Baroda (BoB) offer returns, Punjab National Bank (PNB), Housing Development Finance Corporation Bank (HDFC) and Industrial Credit and Investment Corporation of India Bank (ICICI) offer returns.
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Let’s say you invest Rs 5,00,000 in a fixed deposit and we will see how much interest general people and senior citizens can earn in 1 year.
State Bank of India (SBI)
General public: The PSU bank provides a 6.25 per cent interest rate to the general public on one year FD scheme. If a depositor submits Rs 5 lakh in this plan they can get a maturity value of Rs 5,31,250.
Senior citizen: The bank gives a 6.75 per cent interest rate to them, a little more from the general public on one year FD scheme. So, if depositors use these plans, in return they will get a Rs 5,33,750 maturity.
That means after fixing an amount of 5 lakh an adult will get a profit of Rs 31,250 and a Senior citizen earns Rs 33,750.
Bank of Baroda (BoB)
General public: The bank offers a 6.5 per cent interest rate in a tenure of 1 year. If a depositor submits 5 lakhs in this plan, they will get Rs 5,32,500 maturity.
Senior citizen: The bank provides 7 per cent interest rate in 1 year, on 5 lakh the depositor will earn an maturity value of Rs 5,35,000.
This shows that the general public will get a profit of Rs 32,000 whereas senior citizens will get a benefit of Rs 35,000 on fixing 5 lakhs.
Punjab National Bank (PNB)
General public: The bank offers 6.25 per cent interest rate annually, on deposit of Rs 5 lakh the bank gives a maturity value of Rs 5,31,250. Therefore, the depositor will get a profit of Rs 31,250.
Senior citizen: A 6.75 per cent interest rate is provided annually by the Punjab National Bank, depositors will get the maturity value of Rs 5,33,750.
HDFC Bank
General public: The bank offers a 6.25 per cent interest rate in a tenure of 1 year. If a depositor submits 5 lakhs in this plan, they will receive Rs 5,31,250 at maturity.
Senior citizen: The bank provides 6.75 per cent interest rate in 1 year, on 5 lakh the depositor will earn an maturity value of Rs 5,33,750. A profit of Rs 33,750 is generated.
ICICI Bank
General public: A 6.25 per cent interest rate is offered by the bank annually, on fixing Rs 5 lakh the bank gives a maturity value of Rs 5,31,250.
Senior citizen: The bank gives a 6.75 per cent interest rate. So, if a depositor uses this plan, in return they will get a Rs 5,33,750 maturity.