With the rising cost of living and inflation, senior citizens are looking for ways to invest their money in tools that can bring good returns to ensure their financial stability. the Senior Citizen Savings Scheme (SCSS) and Bank fixed deposits (FDs) are ideal investment opportunities that can maintain long-term stability and increase other benefits.
However, recently many lenders have lowered the bank’s fixed deposit interest rate, leading people to look for other investment instruments.
To attract customers, top lenders such as the State Bank of India (SBI), HDFC Bank, Bank of Baroda (BoB), and ICICI Bank are offering additional interest rates in addition to the current fixed deposit (FD) rates applicable to senior citizens.
SBI Special Fixed Deposit (FD) Scheme For Senior Citizens
SBI’s special FD scheme for senior citizens will provide interest rates at 80 basis points (bps) higher than the interest rates available to ordinary investors.
Currently, SBI offers the general public a five-year FD rate of 5.4%. According to a special fixed deposit scheme, the current upper limit of interest rates for senior citizens is 6.20%.
HDFC Bank’s Special FD Scheme For Senior Citizens
HDFC Bank offers higher interest rates of 75 basis points for these special deposits. This means that under HDFC Bank Senior Citizen Care FD, senior citizens will get a good return of 6.25%
Bank of Baroda’s Special FD Scheme For Senior Citizens
The Bank of Baroda (BoB) is providing deposits of more than 100 bps for senior citizens. If there are senior citizens deposits in this scheme, under the special time deposit plan, the interest rate available for the time deposit will be 6.25%, and the validity period will be more than 5 years to 10 years.
ICICI Bank’s Special FD Scheme For Senior Citizens
ICICI Bank raised the interest rate on such deposits to 80 basis points. The ICICI Bank’s golden annual fixed deposit scheme suggests that the annual interest rate for senior citizens is 6.30%.
Canara Bank’s Special Scheme
In addition to this, the country’s largest state-owned Canara Bank has revised its fixed deposit interest rate in early February. The bank has reduced the interest rate of fixed deposits due within one year by 0.05%, which means that the interest rate of fixed deposits will now be 5.20%.
However, interest rates on fixed deposits over 2 years have increased. Experts say that investors have the opportunity to make big money by investing in mutual funds instead of FD because the stock market is reaching new heights. At the same time, the government stated in the budget that it would increase infrastructure spending. This is why you can make a lot of money in the Canara Robeco Infrastructure Regular plan.
First of all, we understand the Canara Robeco Infrastructure Regular Plan
In the past ten years, it has outperformed the benchmark index and category average. During this period, it has given investors a return of 175%. At the same time, in the five years since its establishment, 80% of the investment returns have reached 478%.
If we look at the recent performance, it is 4% for one week, 12% for one month, 35% for three months, 42% for six months, and 23% for one year.
If someone invested 10,000 rupees a month ago, their investment will increase to 11,235 rupees. Within 6 months, the amount will increase to Rs 14,183.
At the same time, if someone invests 1,000 rupees through SIP every month, the annual investment will be 12,000 rupees.
The current amount will increase to 17,000 rupees. In 2 years, an investment of Rs. 24,000 rupees will increase to rupees 33024 and in 5 years an investment of Rs. 81309and an investment of 120000 Rs. will reach 223,317 within ten years.
Should We Now Invest In Canara Robeco Infrastructure Regular Plan?
Experts believe that one of the most immeasurable ways to get the country out of the economic crisis is to boost investment in infrastructure. In order to overcome the 2008 financial crisis, the government invested heavily in infrastructure in 2009 and 2010.
The same efforts are being made this time, so the return expectations of such funds that invest in companies in the infrastructure sector have increased.
Investment advisors believe that the shares of infrastructure companies have underperformed in the past few years. At this time his current valuation is very low.
Therefore, those who invest in infrastructure funds will get more units cheaply. This will be a lucrative deal for investors who invest funds linked to infrastructure companies.
Previously, this was a small and medium cap fund. Compared with many other schemes, it favors small-cap stocks. Now it has become large and medium cap funds. As a result, many major changes have taken place.
However, its focus is still to select companies with fundamental strengths. The fund’s investment in top stocks increased slightly.
By the way, it has performed well in the past. Therefore, existing investors can make long-term investments and obtain good returns.
Canara Bank’s New Fixed Deposit Rate
7-45 days – 2.95%
46- 90 days – 3.90%
91-179 days – 4%
Year-within one year 4.45%
More than 1 year and less than 2 years -5.20%
2 years or more and less than 3 years -5.40%
3 years or more and less than 5 years – 5.50%
5 years or more to 10 years-5.50%
What is SIP in Mutual Funds?
SIP stands for System Investment Plan. Many investors also call it SIP. It allows investors to regularly invest a fixed amount in a mutual fund scheme.
In this way, this is an easy way to invest in mutual funds. In this case, you buy mutual fund units by withdrawing a small number of funds from your earnings every month. A few years later, the regular investment became a big investment.
You can invest in a mutual fund scheme through SIP for one year, two years, five years, or more.
In the first investment, the mutual fund company allocates the scheme units to you. The number of units you get depends on the unit’s Net Asset Value (NAV).
Suppose you invested 1,000 rupees through SIP in the first month. If the price of one unit of the plan you invest in is 20 rupees, the mutual fund company will allocate you a price of fewer than 50 units.
You will not get 50 units because the asset management company will charge you a little money to manage the fund. This is called the expense ratio. As you continue to invest, the number of units keeps increasing.