Fixed Deposit Schemes to offer higher return for Senior Citizens

The Reserve Bank of India has permitted banks to formulate fixed deposits schemes for senior citizens offering higher and fixed rates of interest as compared to normal deposits of any size.

In addition, the Government had launched a Senior Citizens Savings Scheme, 2004 with effect from 2nd August, 2004. Persons of age 60 years and above and those retired persons who are 55 years of age and above but less than 60 years are eligible to invest in the scheme.

The rate of interest on deposits under the scheme compares favourably with the yield on Government security of comparable tenor. All deposits upto Rs.one lakh including those of senior citizens, are insured by the Deposit Insurance and Credit Guarantee Corporation (DICGC).

Source : Press Information Bureau

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