Fixed Deposit interest rate for senior citizens jumps again: How much should you invest in a bank?

Fixed Deposit interest rates for senior citizens in India have seen a significant boost for the second time in a year, leading to a surge in the number of senior citizens investing in fixed deposits. The State Bank of India, for instance, now offers a 6.2% interest rate to senior citizens for deposits up to Rs 2 crore, compared to a much lower rate for regular customers. Similarly, other banks also offer slightly higher rates to senior citizens. This news is especially significant considering that fixed deposits are a relatively safe form of investment, given that the government insures them up to Rs 5 lakh per bank. Experts suggest that investors should keep about three to six months worth of expenses in fixed deposits, but should also look for other investment opportunities to mitigate the impact of inflation. Additionally, investors should pay attention to the credibility and track record of the bank they want to invest in. Overall, this article highlights the importance of investment planning and the impact of policies on senior citizens who are looking to safeguard their retirement funds.