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Business Standard
2 days ago
- Business
- Business Standard
Bad news for FDs: Rates to fall sharply as RBI cuts repo rate by 50 bps
The Reserve Bank of India (RBI) cut its repo rate by 50 basis points to 5.5 per cent on Friday, June 6, in its third monetary policy review for the 2025–26 financial year. This is the third straight cut by the Monetary Policy Committee (MPC) this year. The move is expected to ease borrowing costs, but fixed deposit (FD) investors may not be pleased. Banks have already begun lowering interest rates on deposits, continuing a trend that started after the central bank's earlier rate reductions. "For depositors, a 50 bps repo rate cut may not slash FD rates overnight, but it does signal the beginning of a downward trend. Banks are likely to start trimming deposit rates, especially for short- and medium-term tenures," said Adhil Shetty, CEO of Several of the country's largest lenders have trimmed their fixed deposit interest rates since the RBI began easing policy in early 2025. < In February and April 2025, the RBI cut the repo rate by 25 basis points each. < According to a report by SBI Research, FD rates have been reduced by 30 to 70 basis points since February 2025. < Interest rates on savings accounts have also been brought down to a floor rate of 2.70 per cent, the report said. Some banks had introduced limited-period schemes to attract deposits, but those are now being withdrawn or adjusted. 'Now they are discontinuing them or lowering the rates on them,' said Santosh Agarwal, CEO of Paisabazaar. What investors can do now With fixed income returns shrinking, investors are looking at alternative strategies to protect returns. "If you've been waiting to lock in current rates, some of which still hover around 7.5%, now may be the time. Senior citizens, who enjoy an extra 25 to 50 basis points, should consider locking in longer tenures," suggested Shetty. He also recommended diversifying. 'Senior citizens should use FDs for stable income, but must also allocate a portion of their portfolio into equities for inflation-adjusted returns,' he said. Look beyond traditional options Aman Gupta, director of RPS Group, said investors should be more hands-on in reviewing options. 'Start with banks and NBFCs that offer the best rates—small finance banks tend to pay 0.5–1 per cent higher than the more orthodox banks,' he said. He also advised reviewing tax impact. 'Post FD returns after the tax slab are not inflation-indexed; tax saving FDs or Senior Citizen Savings Scheme (SCSS) outperform inflation post taxation and therefore are better alternatives,' said Gupta. For investors seeking a mix of safety and returns, Gupta pointed to hybrid investment options. 'Channel a portion of the savings towards instruments such as arbitrage or conservative hybrid funds which offer better stability than equities but tend to be volatile relative to bonds,' he said. 'Maintain an emergency fund with six to twelve months of expenses while exploring alternatives,' he added. "Fixed deposit rates to come down sharply as banks transmit this rate cut. Investors should look at 2 to 3-year corporate bonds for their portfolio as they continue to offer good spreads over government and FD rates, and interest rates will come down more gradually for corporate bonds,' Vishal Goenka, co-founder of said. Try staggered investments Siddharth Maurya, founder and managing director of Vibhavangal Anukulakara Private Limited, advised spreading fixed deposit investments across various tenures. 'Try out debt mutual funds, corporate bonds, or RBI floating rate savings bonds as they may yield superior returns after tax,' he said. 'Employ FD laddering—divide your portfolio into several FDs with staggered maturities, for example, 1, 2 and 3 years.' He also urged depositors to keep an eye on maturity timelines. 'If you have shorter-term deposits, make sure to renew them reliably to bypass auto-renewal at devalued rates,' said Maurya. Key investor tips Lock in current FD rates: Consider fixing rates now for medium to long-term tenures. Use laddering: Spread FDs across different maturities to manage reinvestment risk. Explore small savings schemes: SCSS and POMIS may offer higher, safer returns. Consider AAA-rated corporate FDs and debt mutual funds: These may provide better yields but come with some risk.
India.com
4 days ago
- Business
- India.com
Senior Citizens' Guide To ITR Filing 2024-25: Know All About Important Exemptions And Deductions
New Delhi: Filing income tax returns can be confusing, especially for senior citizens. While those above 80 years are not required to file returns at all, people between 60 and 80 still have to. However, there's some relief for seniors above 75—if their income is only from pension or interest, they can just submit Form 12BBA at their bank instead of going through the full return-filing process. Here's a simple look at the key deductions, exemptions, and tax-saving options available to senior citizens under the old tax regime. Higher Basic Exemption Limit for Senior Citizens Senior citizens under the old tax regime get a higher basic exemption limit. For those aged 60 and above, income up to Rs 3 lakh is tax-free while for those over 80, the limit goes up to Rs 5 lakh. Anyone with taxable income up to Rs 5 lakh can claim a rebate, making their total tax payable zero. In comparison, the new tax regime offers a flat basic exemption limit of Rs 3 lakh for everyone, regardless of age. However, it provides a rebate for incomes up to Rs 7 lakh and a higher standard deduction of Rs 75,000 for pensioners, compared to Rs 50,000 in the old regime. Section 80C deductions Senior citizens under the old tax regime can save on taxes by investing in the Senior Citizens' Saving Scheme (SCSS). This scheme is open to those above 60 years of age (or 55 for retired civilian employees and 50 for defence personnel). Investments of up to Rs 30 lakh in SCSS are eligible for a tax deduction of up to RS 1.5 lakh under Section 80C.// Tax Deductions on Health Insurance Senior citizens can claim a tax deduction of up to Rs 50,000 under Section 80D for health insurance premiums they pay. If their children pay the premium on their behalf, the children can also claim this deduction. In such cases, the total deduction can go up to Rs 75,000—Rs 50,000 for parents and Rs 25,000 for self, spouse, and children. If a senior citizen pays the premium for their own policy and also for their parents then they can claim up to Rs 1 lakh in deductions under this section. Furthermore, if a senior citizen doesn't have health insurance they can still claim a deduction of up to Rs 50,000 for medical expenses they incur during the year. Tax Break on Interest Income for Senior Citizens Senior citizens can get tax relief on interest earned from savings and fixed deposits in banks and post offices under Section 80TTB. They can claim a deduction of up to Rs 50,000 in a financial year. If the interest earned goes beyond this limit, the extra amount will be taxed.
Time of India
28-05-2025
- Business
- Time of India
These SBI death claims can be settled in home branch only
With the advent of technology, many banks have started allowing the filing of death claims online. This helps the nominee and/or legal heirs to carry out banking transactions such as closing of bank accounts, fixed deposits etc. from the comfort of their house. However, according to the FAQs from the State Bank of India , there are certain conditions where nominee/legal heirs will have to go to the home branch of the bank where the deceased held the account to file claim settlement. Here is a look at the conditions in which nominee/legal heirs will have to specifically visit the home branch to file a death claim settlement . Which SBI death claims will be settled at home branch only? Death settlement claims of safe deposit lockers , loan accounts of deceased claim submission will be done at the home branch only. According to the SBI FAQs, 'Safe Custody Articles, Safe Deposit Lockers and loans in the same CIF of the deceased constituent, will be dealt with as per Bank's extant instructions. For loans, bank's specific and general lien will be available and applicable for the loans but the same are to be dealt with by the home branch only, before settlement of the deceased claim.' SBI locker claim settlement: How settlement will work after death of locker hirer Live Events Steps to submit death claim settlement in home branch Step 1: Visit any SBI branch where the deceased account holder had a deposit account. Step 2: Submit the required documents (e.g., death certificate, nominee details, or legal heirship documents) to the branch staff, who will forward them to the home branch for settlement. How to submit online death settlement claim for savings account, fixed deposits Step 1: Visit the Deceased Claim Settlement Portal (CRCF) on SBI's official website ( under the 'Customer Care' section. Step 2: Complete the online claim form, upload the required documents, and select the preferred branch (from the dropdown menu of branches where the deceased held a deposit account) for further processing. This mode allows you to initiate the process of filing a claim from the comfort of your home, reducing the need for immediate branch visits. Also read: SBI cuts fixed deposit interest rates again by 20 bps: Check latest FD rates What will be the process of settlement of different cases of deceased constituent accounts? The process will cover all cases, with nomination as well as without nomination (both with and without Legal Representation) and survivorship cases and will be applicable only for deposit accounts of individuals. Deposit schemes such as PPF, SCSS and SSA The precise rules and forms provided by the government from time to time for the settlement of Government Deposit Schemes (PPF, SCSS, and SSA) must be followed. However, settlement of bank deposit accounts may not be delayed due to non-compliance with particular rules governing government deposit schemes. In such instances, settlement of accounts under government deposit plans will be handled independently. An important point to note is that while claimants or nominees can submit documents at any branch where the deceased held a deposit account, the final settlement of the claim will occur only at the home branch of the deceased accountholder. Important FAQs related to SBI death claim How can a branch be selected to get the proceeds of the deceased amount? The claimants/nominees can select any of the branches (where the deceased a/c holder has a deposit account) from the dropdown menu available in the Portal. Which branch will settle the claims of the claimants/nominees of deceased constituents? The claimants/nominees will be given the option to select any of the branches, where the deceased a/c holder has a deposit account, and he/she wants to settle the claim / submit required documents/ execute documentation before final payment. How can claimants/nominees register their claims through the branch? The claimants/nominees may visit any of the branches where the deceased a/c holder has any deposit account and can submit the documents. How claims for settlement of deceased constituent accounts can be lodged in the new framework? Claimants/nominees will be able to submit a claim for settlement of deceased constituent accounts in two ways: a) Online Mode – At the Deceased Claim Settlement Portal (CRCF) available at Bank Website ( under Customer Care. b) Physical Mode - By visiting any of the branches where the deceased a/c holder has a deposit account.
Time of India
28-05-2025
- Business
- Time of India
These SBI death claims will be settled in home branch only
With the advent of technology, many banks have started allowing the filing of death claims online. This helps the nominee and/or legal heirs to carry out banking transactions such as closing of bank accounts, fixed deposits etc. from the comfort of their house. However, according to the FAQs from the State Bank of India , there are certain conditions where nominee/legal heirs will have to go to the home branch of the bank where the deceased held the account to file claim settlement. Here is a look at the conditions in which nominee/legal heirs will have to specifically visit the home branch to file a death claim settlement . Which SBI death claims will be settled at home branch only? Death settlement claims of safe deposit lockers , loan accounts of deceased claim submission will be done at the home branch only. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Elegant New Scooters For Seniors In 2024: The Prices May Surprise You Mobility Scooter | Search Ads Learn More Undo According to the SBI FAQs, 'Safe Custody Articles, Safe Deposit Lockers and loans in the same CIF of the deceased constituent, will be dealt with as per Bank's extant instructions. For loans, bank's specific and general lien will be available and applicable for the loans but the same are to be dealt with by the home branch only, before settlement of the deceased claim.' SBI locker claim settlement: How settlement will work after death of locker hirer Live Events Steps to submit death claim settlement in home branch Step 1: Visit any SBI branch where the deceased account holder had a deposit account. Step 2: Submit the required documents (e.g., death certificate, nominee details, or legal heirship documents) to the branch staff, who will forward them to the home branch for settlement. How to submit online death settlement claim for savings account, fixed deposits Step 1: Visit the Deceased Claim Settlement Portal (CRCF) on SBI's official website ( under the 'Customer Care' section. Step 2: Complete the online claim form, upload the required documents, and select the preferred branch (from the dropdown menu of branches where the deceased held a deposit account) for further processing. This mode allows you to initiate the process of filing a claim from the comfort of your home, reducing the need for immediate branch visits. Also read: SBI cuts fixed deposit interest rates again by 20 bps: Check latest FD rates What will be the process of settlement of different cases of deceased constituent accounts? The process will cover all cases, with nomination as well as without nomination (both with and without Legal Representation) and survivorship cases and will be applicable only for deposit accounts of individuals. Deposit schemes such as PPF, SCSS and SSA The precise rules and forms provided by the government from time to time for the settlement of Government Deposit Schemes (PPF, SCSS, and SSA) must be followed. However, settlement of bank deposit accounts may not be delayed due to non-compliance with particular rules governing government deposit schemes. In such instances, settlement of accounts under government deposit plans will be handled independently. An important point to note is that while claimants or nominees can submit documents at any branch where the deceased held a deposit account, the final settlement of the claim will occur only at the home branch of the deceased accountholder. Important FAQs related to SBI death claim How can a branch be selected to get the proceeds of the deceased amount? The claimants/nominees can select any of the branches (where the deceased a/c holder has a deposit account) from the dropdown menu available in the Portal. Which branch will settle the claims of the claimants/nominees of deceased constituents? The claimants/nominees will be given the option to select any of the branches, where the deceased a/c holder has a deposit account, and he/she wants to settle the claim / submit required documents/ execute documentation before final payment. How can claimants/nominees register their claims through the branch? The claimants/nominees may visit any of the branches where the deceased a/c holder has any deposit account and can submit the documents. How claims for settlement of deceased constituent accounts can be lodged in the new framework? Claimants/nominees will be able to submit a claim for settlement of deceased constituent accounts in two ways: a) Online Mode – At the Deceased Claim Settlement Portal (CRCF) available at Bank Website ( under Customer Care. b) Physical Mode - By visiting any of the branches where the deceased a/c holder has a deposit account.
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Business Standard
22-05-2025
- Business
- Business Standard
SCSS vs NSC vs Debt Funds: Which fixed-income option is the best in 2025?
When it comes to generating stable, tax-efficient returns, investors in India often find themselves torn between traditional savings instruments like the Senior Citizens' Savings Scheme (SCSS) and the National Savings Certificate (NSC), or newer, more market-linked options like debt mutual funds. With interest rates, tax rules, and inflation all evolving, how do these options compare today? More importantly, which one should you pick based on your needs? The Contenders: What are they? Fixed-rate small saving schemes vs debt mutual funds. Source: Value Research 1. SCSS (Senior Citizens' Savings Scheme) For: Individuals aged 60 and above Interest Rate (April–June 2025): 8.2% p.a. (paid quarterly) Tenure: 5 years (extendable by 3 years) Tax Benefits: Eligible for Section 80C deduction (up to Rs 1.5 lakh) Interest is taxable, but TDS is applicable if interest exceeds Rs 50,000/year Best for: Retirees seeking regular income with government guarantee 2. NSC (National Savings Certificate) For: Any Indian citizen Interest Rate (April–June 2025): 7.7% p.a. (compounded annually, paid at maturity) Tenure: 5 years Tax Benefits: Principal qualifies for Section 80C Interest is taxable, but reinvested interest (except final year) also qualifies for Section 80C Best for: Conservative investors with a 5-year horizon, who don't need regular income 3. Debt Mutual Funds For: Investors of all ages Returns: 6–8% on average, can be higher/lower depending on type Taxation (Post-2023 rules): Gains taxed at slab rate (no LTCG benefit) No Section 80C benefit Indexation benefit abolished for debt funds Best for: Investors seeking liquidity and diversification, with some risk tolerance Comparative Snapshot Which one should you choose? For Senior Citizens: Value Research recommends SCSS Why: It offers high assured returns and quarterly payouts, ideal for retirees needing regular income. Example: Mrs. Rani, 65, invests Rs 15 lakh in SCSS. She earns Rs 30,750 every quarter, providing her with predictable income while her capital remains safe. For Salaried Taxpayers Saving for 5 Years: Choose: NSC Why: If you want a fixed return and tax savings under 80C but don't need liquidity, NSC fits the bill. Example: Sanjay, 35, wants a tax-saving investment but already maxes out EPF and PPF. He invests ₹1.5 lakh in NSC. In 5 years, he gets back ₹2.2 lakh, earning steady compounded returns without taking any market risk. For Working Professionals with Moderate Risk Appetite: Choose: Debt Mutual Funds Why: If you value liquidity and want to diversify with dynamic returns, debt funds (like low duration, short-term, or corporate bond funds) are suitable. Example: Priya, 40, keeps ₹5 lakh in a corporate bond fund yielding 7.2%. She holds it for 2 years and exits without penalty when she needs the money for her child's school admission. Caution: Tax rules have changed Post-April 2023, debt funds lost their long-term capital gains (LTCG) tax benefit and indexation advantage. Now, all gains — even after 3 years — are taxed as per slab rate. This reduces their edge over traditional instruments, especially for those in the highest tax bracket (30%). Tip: Tax-aware investors in higher brackets should lean toward SCSS or NSC unless they need liquidity. There's no one-size-fits-all answer. Your life stage, income needs, tax bracket, and risk appetite should drive the decision. As per Value Research:
