Senior citizen special fixed deposit (FD) schemes are offered by top banks such as State Bank of India (SBI), HDFC Bank, ICICI Bank, and Bank of Baroda (BoB). Extra interest rates are being provided by these banks under this scheme over the existing rates applicable for them on term deposits.
As compared to the others, the banks offer higher interest rates for senior citizens.
Amid the COVID-19 pandemic, this special FD scheme was launched in May to safeguard the interests of senior citizens as the interest rates were falling fast. Previously, the scheme was introduced till September, then it was extended till December 31, 2020.
Special FD scheme for senior citizens by HDFC Bank:
The scheme is known as 'HDFC Senior Citizen Care'. HDFC Bank provides 75 bps higher interest rate on these deposits. 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 percent . These rates are applicable from November 13.
Special FD scheme for senior citizens by ICICI Bank:
'ICICI Bank Golden Years' is the name of the scheme. ICICI Bank offers 80 bps higher interest rate on these deposits. Under this scheme, the bank offers an interest rate of 6.30 percent per annum. These rates are effective from October 21.
Special FD scheme for senior citizens from Bank of Baroda:
Bank of Baroda offers 100 bps higher on these deposits to senior citizens. Under the special FD scheme (above 5 years to up to 10 years), if a senior citizen puts a fixed deposit, then the interest rate applicable to the FD will be 6.25 percent. These rates are effective from November 16.
Special FD scheme for senior citizens from State Bank of India:
SBI special FD scheme for senior citizens will fetch 80 basis points (bps) interest rate above the rate applicable to the general public. At present, SBI gives 5.4 percent interest rate on five years FD for the general public.
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 percent. This additional interest i.e. 30 bps under the special scheme for senior citizens will not be payable in case of premature withdrawal of such deposits. Therefore, if you opt for premature withdrawal of an FD under the scheme, your fixed deposit investment will fetch only 5.9 percent i.e. 50 bps above the general customers.