Cut in Savings Bank interest a blow to senior citizens
The interest rate in savings bank account by State Bank of India is a big blow to senior citizens as mostly they keep a sizeable amount of their savings in Savings Bank accounts to meet their daily expenses. Frequently, in case of small savings schemes and PPF etc., a cut in interest rates is now a routine affair by the government which hits the common man hard, especially senior citizens. With changing times and continuing inflatiory trend, the worth of the rupee is falling daily. Since the share market is not for the common man and especially senior citizens, the safest mode in investment is Savings Bank Accounts, Bank Fixed Deposits and Small Savings Schemes and PPF. Their interest rates are lower now as compared to a few years earlier. Instead of a much higher rate, at 9% in savings bank accounts of senior citizens be offered or equivalent to Fixed Deposits with bank rates, the banks are cutting it to lowest levels.
Chartered Accountant ,
B-49, Gulmohar Park,
New Delhi-110 049.