Interest income for the elderly fell by half in 10 years, interest on FD decreased by 45 percent

Over the last 10 years, the interest rate on fixed deposits of senior citizens in the country has fallen by 45 per cent. At the same time, other savings plans for senior citizens have also reduced interest. Because of this, the return on their deposits is constantly decreasing. The number of senior citizens in the country is estimated at about 15 crore. They are directly affected by the reduction in interest rates.

According to statistics, senior citizens received 9.75 per cent interest on fixed deposits in public sector banks in 2011, which is now down to 5.5 per cent on one-year deposits in 2021. As such, the bulk of people’s interest income has begun to decline.

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According to estimates, a person over the age of 60 paid Rs 20 lakh in 2011. If he had a fixed deposit, he would get Rs 1,95,000 a year. 16,250 per month. But interest rates are low because, as of today, if you have a fixed deposit of Rs 20 lakh, you will only get Rs 1,10,000. That is, Rs 9,166 per month.

Moreover, if we talk about the senior citizens’ savings plan, it has seen a big uptick in interest as well. In 2011, interest on deposits was 9 per cent but today it is down to 7.4 per cent. According to experts, these interest rates have come down because of a decade of economic change.

Tax and economic affairs expert Yogendra Kapoor told India through these assessments that the demand for credit in the economy has been reduced due to the slowdown in manufacturing and infrastructure sectors. In order to maintain demand momentum, the Reserve Bank needs to reduce the repo rate. This has reduced the interest earned on deposits. Banks today have more liquidity so they can offer loans but people have to bear interest on deposits, ”he said. Senior citizens are also suffering.

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