Those believing in safety first are outrunning the glory chasers these days, with stock returns trailing yields on plain-vanilla fixed deposits by a long shot, especially with several public sector banks raising the rates on deposits to as high as 7.75-8% for specific tenures – and categories of savers.
“After the rise in rates, fixed deposits are good options now as they beat inflation,” said Jitendra Solanki, a Sebi-registered adviser.
PSU banks have taken the lead in raising deposit rates, offering as high as 8.5% to senior citizens for specific tenures. State Bank of India now offers 7.1% for a 400-day deposit, with senior citizens earning 7.6%. Among other nationalised banks offering attractive rates are Union Bank of India -7.3% for an 800-day deposit, and Central Bank 7.25% – for a 444-day deposit. Punjab and Sind Bank offers 8% for a 221-day deposit if done online, with senior citizens earning 8.5%.
