Special FD schemes for Senior Citizens

Due to the difficulties being faced by the senior customers, many banks have launched special FD schemes with higher interest rates as compared to that offered to regular customers

1. For senior citizens, fixed deposit (FD) is one of the most common financial instruments to invest their money.  All major banks like State Bank of India (SBI), ICICI, HDFC, and others provide the facility of depositing your lump some money for a fixed tenure. Investors love to park their money in these avenues because they offer guaranteed returns and given the fact that FDs are safe.
2. However, this special FD scheme for senior citizens is applicable until 31 December 2020.
3. Senior citizens’ special FD scheme is applicable for a tenure of 5 years or more. State Bank of India, Bank of Baroda, HDFC Bank, and ICICI Bank are offering extra interest rates over the existing senior citizen interest rates for fixed deposit. The deposit amount is not limited to Rs 1.5 lakh. And, the eligibility criteria being that residents of 60 years or more are eligible to invest in Senior citizens’ special FD scheme.

SBI ‘WECARE’ Senior Citizens FD

The country’s largest banker, State Bank of India (SBI), announced a special fixed deposit scheme for senior citizens called, SBI ‘WECARE’ Senior Citizens.’ It offers 80 bps higher interest rates to its senior customers. If a senior citizen puts a fixed deposit under the special FD scheme, then the interest rate applicable to the FD will be 6.20%. These rates are applicable to effective May 27.

Bank of Baroda special FD scheme for senior citizens

In the current challenging situation brought by COVID-19, Bank has agreed to pay an additional rate of interest in “Above 5 years to up to 10years” tenor to Resident Indian Senior Citizen. It offers 100 bps higher interest rates to its senior customers. If a senior citizen puts a fixed deposit under the special FD scheme, then the interest rate applicable to the FD will be 6.30%. On deposits maturing in 7 days to 10 years, Bank of Baroda pays 3.40% to 6.30% to senior citizens.

HDFC Bank special FD scheme for senior citizens

Private sector lender, HDFC Bank too has launched an FD scheme for seniors called ‘Senior Citizen Care FD’. According to HDFC Bank’s website, the bank is offering an additional 75 basis points (bps) for deposits with more than 5-year tenors with investments up to Rs 5 crore. If a senior citizen puts a fixed deposit under HDFC Bank Senior Citizen Care FD, then the interest rate applicable to the FD will be 6.25%. Under this new product, an additional 25 bps premium will be payable for senior citizens’. These rates are applicable from 12 June. A premature withdrawal penalty of 1% is charged if withdrawn on or before 5 years and a penalty of 1.25% if withdrawn after 5 years.

ICICI Bank special FD scheme for senior citizens

ICICI Bank’s special FD scheme for senior citizens is called ICICI Bank Golden Years. It offers 80 bps higher interest rates to its senior customers. The banks’ FD scheme offers senior citizens an interest rate of 6.30% per annum. Premature withdrawal will attract a penalty of 1% if withdrawn before 5 years 1 day and a penalty of 1.30% if withdrawn after 5 years 1 day.