[bestwriter]

In India fixed deposits in banks generate income by way of interest that is paid monthly, quarterly or cumulatively.

For seniors the rate of interest is a bit higher and more if one keeps the money for longer periods. When it comes to cumulative deposits the interest gets compounded and the interest is paid once the deposit matures.

I will get a good bit of interest this month as two of my cumulative deposits have matured

A gift for my birthday indeed - May 24

[kataomoi]

Just out of curiosity, what's the interest rate for a brick and mortar bank checking/savings account? In the US, it's ridiculously low like 0.01% or something. That's why a lot of people like to use HYSA from online banks. They pay 3-4%, much more than a traditional bank and the money can be withdrawn at any time.

[germainebull]

For seniors the rate of interest is a bit higher

This is an attractive provision.
I am wondering why India's banks offer high interest rates to seniors.

[eldavis]

This is unrelated, but you are from india? I would never have guessed that.

[germainebull]

Nope. I am not from India.
I'm just admiring Indian banks' policies toward seniors' savings.

[bestwriter]

Just out of curiosity, what's the interest rate for a brick and mortar bank checking/savings account? In the US, it's ridiculously low like 0.01% or something. That's why a lot of people like to use HYSA from online banks. They pay 3-4%, much more than a traditional bank and the money can be withdrawn at any time.

For seniors it is 7.75 a bit more than others.

[kataomoi]

7.75%? That's really good. I'm guessing that's for a fixed amount that you can't withdraw until some time has passed?

[eldavis]

Nope. I am not from India.
I'm just admiring Indian banks' policies toward seniors' savings.

Lol oh okay, though i was asking bestwriter though.

[bestwriter]

One normally waits till it matures but if it is drawn before that then there is penalty

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[kataomoi]

You're talking about something like a certificate of deposit then. How about for money that doesn't need to wait till maturity? What's the interest rate on that?

[bestwriter]

You are talking about savings account and that is just about 2.5 or 3 percent. This can be withdrawn any time with no penalty

[kataomoi]

That's still higher than most US banks. Not bad at all.

[bestwriter]

I pay more attention to fixed deposits that do help us earn that is of substance.

[ptrikha21]

Wow ! I come across this post on 24th !
Happy Birthday
May you have a great time ahead!
Any special celebration/cake plan?

Often we neglect the compounding effect. It is important not only for Fixed Or Recurring Deposits but for Mutual Funds as well.

[monster_masterpiece]

Often we neglect the compounding effect. It is important not only for Fixed Or Recurring Deposits but for Mutual Funds as well.
0

The concepts are not the same. I prefer Mutual Funds as well as Recurring Deposits because they have fast returns.

[bestwriter]

Wow ! I come across this post on 24th !
Happy Birthday
May you have a great time ahead!
Any special celebration/cake plan?

Often we neglect the compounding effect. It is important not only for Fixed Or Recurring Deposits but for Mutual Funds as well.

I had a great birthday with guests singing for me with loads of gifts.

[monster_masterpiece]

Happy birthday bestwriter.

--- May 25th, 2026, 5:48 am ---

Happy birthday bestwriter.

[bestwriter]

Thank you. Had a great time.

[mrki444]

In Croatia interest rates are shamless. Most people keep money in ETF fonds. In regular savings only keep elders or those with big amounts of money.

[bestwriter]

Even here in India interest rates are on the decrease.