The largest bank, State Bank of India (SBI) as also other banks like Bank of Baroda and private lenders HDFC Bank, and ICICI Bank have now come out with a special fixed deposit (FD) scheme for senior citizens.
Here, these banks offer extra interest rates over the existing rates applicable for senior citizen term deposits. Normally banks offer higher interest rates for the senior citizens as compared to the others. The special FD scheme for senior citizens is applicable till 30 September 2020.
SPECIAL FEATURES OF THE SENIOR CITIZENS SPECIAL FD SCHEME OFFERED BY SBI, Bank of Baroda, ICICI and HDFC Bank are as under:
- Senior citizen’s special FD scheme is applicable for tenure of 5 years or more.
The new interest rates applicable to fresh term deposits as well as existing deposits. - The special FD scheme for senior citizens is applicable till 30 September 2020.
- SBI, 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
- Residents of 60 years or more are eligible to invest in Senior citizens special FD scheme.
SBI special FD scheme for senior citizens
- The scheme offered for senior citizens is known as ‘SBI We Care’.
- New interest: 80 bps higher
- Interest rate: 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 27 May.
- A penalty of 0.5% may apply
Bank of Baroda special FD scheme for senior citizens
- Under the present challenging situation brought by COVID-19, Bank has agreed to pay additional rate of interest in “Above 5 years to upto 10years” tenor to Resident Indian Senior Citizen and this is valid till 30.09.20 which means the new interest will be100 bps higher
- Interest rate: If a senior citizen puts a fixed deposit under the special FD scheme, then 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
- Penalty of 1.5% on applicable rate of interest for the period for which the deposit has remained with the Bank.
HDFC Bank special FD scheme for senior citizens
- HDFC Bank special FD scheme for senior citizens is called HDFC Senior Citizen Care. Here the new interest will be 75 bps higher
- Interest rate: If a senior citizen puts a fixed deposit under HDFC Bank Senior Citizen Care FD, then 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.
- Premature withdrawal: Penalty of 1% if withdrawn on or before 5 years
- Penalty of 1.25% if withdrawn after 5 years
ICICI Bank special FD scheme for senior citizens
- The scheme is called ICICI Bank Golden Years.
- New interest: 80 bps higher
- Interest rate: ICICI Bank Golden Years FD scheme offers senior citizens an interest rate of 6.30% per annum
- Premature withdrawal: Penalty of 1% if withdrawn before 5 years 1 day
- Penalty of 1.30% if withdrawn *after 5 years 1 day
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