Interest rates on bank deposits and plight of senior citizens

Sir,

Apropos the letter of Dr. S.V.N. Vijayendra on interest rates, it is true that there is steep reduction in interest rates on bank deposits and Savings Bank accounts very frequently. In the early days, a depositor had to pay banks for safe custody. The situation now is again heading towards that practice.

Government is also progressively reducing every quarter the interest rates on savings products like Fixed Deposits, NSCs, Senior Citizen Scheme etc. Senior Citizens cannot afford to take financial risks in venturing into various other modes of investments like Shares and nowadays Mutual Funds too.

Bonds and other securities require professional support where also investment is too long with low rate of interest. Non-pensioners are put to maximum hardship. In this situation the only remedy is that children should take care of parents and other seniors. Just as there is a right to property/assets for children, they owe a responsibility towards parents and other kith  & kin who are childless.

We should build a good and strong society to help seniors pass through their old age with the satisfaction of their successive generations prospering. Now that Western and Gulf countries have no place for expatriates due to economic recession, children should try to settle with parents as near as possible. Hope things will improve over a period of time.

– M.R. Rangarajan, Gokulam, 15.5.2020

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This post was published on May 16, 2020 5:55 pm