With the Reserve Bank of India (RBI) raising repo rates many times in the last one year, banks have also raised their interest rates on their term deposits. Most of the public sector banks (PSBs) are offering interest rates of above 6.5 per cent for regular customers. The rate is even more lucrative for senior citizens.

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The interest rate earned on fixed deposits in banks (excluding small finance banks) has reached 8 per cent, which was merely in the range of 5 to 6.5 per cent a year ago. Senior citizens are in for an even sweeter deal as they get an additional interest rate of 0.50 per cent on fixed deposits.

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