Delink Small Savings Interest Rates
There is urgent need to delink Small Savings Interest Rates from other interest rates which are expected to change with every announcement by Reserve Bank of India changing the Repo Rate.
As central bank lowers its benchmark rates whenever it is comfortable that inflation is low and there is a need to push demand and give a boost to economic activity . In a deregulated environment that we operate, banks are expected to take cue and take a corresponding decision after consulting their respective boards to lower Deposit Rates.
Therefore the Small Savings Interest Rates and 5 Year Fixed Deposit Rates should be delinked with RBI benchmark rates to ensure that Senior Citizen's income does not go down.
In fact in view of increasing prices of all items of daily consumption including food items and vegetables the Small Savings Interest Rate should revised to 12% per annum. more
As central bank lowers its benchmark rates whenever it is comfortable that inflation is low and there is a need to push demand and give a boost to economic activity . In a deregulated environment that we operate, banks are expected to take cue and take a corresponding decision after consulting their respective boards to lower Deposit Rates.
Therefore the Small Savings Interest Rates and 5 Year Fixed Deposit Rates should be delinked with RBI benchmark rates to ensure that Senior Citizen's income does not go down.
In fact in view of increasing prices of all items of daily consumption including food items and vegetables the Small Savings Interest Rate should revised to 12% per annum. more
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Mr Avinash Limaye- Everything called gold does not glitter. These bonds are fro for the rich, not common man. The interest rate is just 2.75%.Those who keep gold instead of hard cash in black can consider buying since it at least gives 2.75%. Buying gold itself will not be worth- as it does not fetch interest. So Government is interested in diverting attention away from gold metal for such people- like builders, real estate people who transact in black for some sales. It should reduce demand for the metal, reduce imports, improve Rupee against Dollar,give money to Government through bonds for development etc etc. Ordinary common man can better invest in MF, Banks and get more interest. I will be happy- if some one can give me a point of view different from this. more
Jul 21
It is good only to talk to develop competency, self esteem, etc,. In Reality senior citizens investments are crippled with many factors like physical health and psychological weakness. How many we think, are capable of doing biz, work hard. Even younger generation are exhausted in India to earn decent livelihood, with whatever competency and fresh blood/mind. Risk appetite among elderly is less, investing in stocks etc may be disaster. more
Jul 21
Where can I have Soverign Gold Bonds, My Present Co-Op Bank do not have them, & Narest Nationalaised Bank Asks Me To Come Personally, Unfortunatly I am Handicaped, and Cant move Out ? Some Body Please Hp Me ! more
Jul 21
I also accept the above suggestion,. It should be categorised based on age and other income. I mean to say that sr citizens are more depend on interest income without other income. But normal citizens need low interest rate and easy to pay low interest payment on loans and encourage cash flow in the markets. So the subsidies are how customised like wise bank interest rates also to be beneficial to sr citizens and low income people. more
Jul 21
Small savings is sovereign debt and is supposed to get lower interest than the bank deposits. However, Government is paying higher interest than the banks. A differential interest rate to be paid to senior citizen is not fair and distorts the interest rate structure in the economy. Senior Citizen should not rely solely on the returns from small savings but diversify his portfolio and invest money in financial instruments giving higher yields. If you want higher return on your investment, you got to put in effort to keep in touch with the current trends. In case senior citizens are concerned about their post retirement incomes to sustain them, they can ask for old age pension scheme by the Government which would be payable to senior citizens with income below certain level. I am also a senior citizen and feel pain reading this post and comments. We Indians have lost our self esteem and respect and want to go around with a begging bowl to the Politicians and Government Functionaries. Let us learn to develop competence, hold our head high and lead a life with dignity. more
Jul 21
