New bonus interest scheme for seniors: Timely or populist?

THE Government has launched a special interest scheme for senior citizens (60 years and above) with effect from 1 July as part of the 2025 Budget proposals.

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The program would enable individuals who are 60 years and above to obtain an additional 3% interest rate on fixed deposits opened at the 17 participating licensed banks from 1 July to 31 December.

The deposit amount is capped at Rs. 1 million per depositor, regardless of the number of participating banks and customers are required to provide a declaration confirming that the funds deposited are their own apart from claiming their monthly income is less than Rs. 150,000.