Amid the COVID-19 pandemic, several public and private banks introduced fixed deposit schemes for senior citizens. In May last year, these deposits were brought into the market. Though the schemes were introduced for a brief period of time, senior citizens garnered benefit in the form of an additional 50 basis points (bps) in standard FD schemes. Along with this, the special FD scheme offers an extra rate of return in addition to the existing premium of 50bps. Indian citizens above 60-years can invest in this scheme and yield maximum benefits from fixed deposits.
As of now, HDFC Bank, ICICI Bank, State Bank of India (SBI), and Bank of Baroda are offering an investment period of five years or more, in the special FD schemes to senior citizens. The last date for availing benefits of the scheme was March 31. But the deadline was extended to June 30.
Special FD schemes of these 4 banks are going to expire this month —
SBI WeCare Deposit
SBI’s special FD scheme known as the ‘WeCare Deposit,’ offers an additional premium of 30 basis points, which is above the card rate for the general public, that is80 basis points. This scheme can be availed for both new deposits as well as renewal of maturing deposits. The ‘WeCare Deposit’ will give you a 6.20 per cent interest, which is in force from January 8.
HDFC Bank Special FD Scheme
Under HDFC Bank’s special FD scheme, senior citizens will enjoy 0.75 percent additional interest. But,the offer is available to only resident senior people aged 60 and more, who are looking forward to making a Fixed Deposit within 5 crores for a 5 to 10-year term. Bank will pay 6.25 percent interest in the Senior Citizen Care FD scheme. According to the official site of HDFC Bank, the rates will be in force from May 21.
ICICI Bank FD Scheme
ICICI Bank’s FD scheme offers an additional interest rate of 0.30% for a limited period. This rate is added over and above the existing additional rate of 0.50 percent per annum. The scheme is applicable on deposits of 5-10 years on single FDs of less than Rs 2 Cr. ICICI Bank Golden Years FD scheme is offered for both new and renewed deposits.It offers a rate of 6.30 percent annually, which will be in effect from 21 October 2020.
Bank of Baroda:
Bank of Baroda offers 100 bps higher to senior citizens in these fixed deposits. Senior will get 1% for tenors of more than 5 years up to 10 years, under the special FD scheme. People availing the scheme will get 6.25 per cent on these deposits, and the rates are applicable from November 16.