Major relief for senior citizens as SBI offers 80 bps more on FDs

SBI's new product offers good rates but SCSS and RBI's savings bonds are more attractive

In a falling interest rate regime, senior citizens are hit the most as they rely on their fixed deposits (FD) for extra income. So, the country’s largest bank, State Bank of India’s decision to give whopping 80 basis points (bps) more for long-term FDs should be welcome news.

However, financial planners say that besides looking for a higher rate, senior citizens have other needs. “While deciding between the two instruments, you need to compare several parameters like the rate, liquidity, and tax efficiency, as well as the upper limit,” says Kiran Telang, founder, Dhanayush Capital Advisors.

For deposits below Rs