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Kisan Vikas Patra or FD of banks, where are you getting strong interest?

ByRomeo Minalane

Mar 26, 2023
Kisan Vikas Patra or FD of banks, where are you getting strong interest?

In the last few months, banks have continuously increased the interest rates of their Fixed Deposits. But the central government claims that the interest rates of Senior Citizen Saving Scheme, National Savings Certificate and Kisan Vikas Patra are better than fixed deposits. But in the current volatile market conditions, bank fixed schemes are considered safer as their returns are not linked to market linked schemes. In the current financial year, the Reserve Bank (RBI) has continuously increased the Repo Rate. Because of this, banks are trying to make their fixed deposit schemes attractive by increasing the interest rates.

Banks are offering an average interest of 7.5 per cent on long-term deposits of 5 to 10 years. But if we compare them with the interest rate of Kisan Vikas Patra, then which one will prove to be better. Let’s understand.

Kisan Vikas Patra

Kisan Vikas Patra is a small saving scheme of the post office and it is quite popular among the people. The government changes the interest rate of Kisan Vikas Patra every three months. For January-March 2023, the central government has fixed an interest of 7.2 per cent on the amount invested in this scheme. The government had changed the interest rate of Kisan Vikas Patra after rising inflation and increased interest on FDs of banks.

With an interest rate of 7.2 percent in Kisan Vikas Patra, the investment amount will double in 10 years. The scheme has a lock-in period ranging from two years to six years. You can start investing in this scheme from Rs 1000 and there is no limit on the maximum investment.

bank fd interest rates

From State Bank of India (SBI), HDFC Bank, Punjab National Bank (PNB), ICICI Bank, Kotak Mahindra Bank to Axis Bank, all major banks have increased their FD interest rates. Where banks are giving annual returns ranging from 7.5 per cent to 8 per cent on fixed deposits. At the same time, Small Finance Banks (SFBs) are giving returns of up to 9.5% on fixed deposits.

state Bank of India

The country’s largest public sector bank State Bank of India is offering interest at the rate of 7.5 per cent to senior citizens on 10-year FDs. These rates are for deposits of less than Rs 2 crore. An investor can earn more than Rs 2.10 lakh in 10 years on a deposit of Rs 1 lakh. Apart from this, SBI has started the Amrit Kalash Deposit Scheme for a period of 400 days. Senior citizens are getting interest at the rate of 7.60 percent on investment in this scheme. You can invest in this special scheme till 31 March 2023.

Punjab National Bank

Punjab National Bank (PNB) is offering 7.3 per cent interest on 10-year FDs to its senior citizen customers. Investors can earn Rs 2.14 lakh by the end of 10 years on a deposit of Rs 1 lakh in PNB at an interest rate of 7.3 per cent.

HDFC bank

HDFC Bank has introduced a special scheme Senior Citizen Care FD for senior citizens. In this scheme, interest will be given at the rate of 7.75 percent on the investment amount for a period of 10 years. The last date to invest in this scheme is 31 March 2023. This offer is applicable for deposits of less than Rs.2 crore. If a senior citizen invests Rs 1 lakh at 7.75 per cent interest, he will get Rs 2.15 lakh directly after 10 years.

ICICI Bank Fixed Deposit

ICICI Bank is running a scheme for senior citizens named Golden Years FD. On investing in this scheme for 10 years, you will get interest at the rate of 7.50 percent. This interest rate is applicable on deposits of less than two crore rupees. Senior citizens can earn Rs 2.1 lakh after 10 years on an investment of Rs 1 lakh at the rate of 7.5 per cent.

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