Special fixed deposit scheme for the elderly (FD): State Bank of India (SBI), HDFC Bank and ICICI Bank, Bank of Baroda (BoB) have a special fixed deposit scheme (FD) for seniors. Under this scheme, these banks offer additional interest rates over the existing rates applicable to them on term deposits. Banks usually offer higher interest rates for seniors than others.
Let’s take a look at the FD special scheme interest rates for seniors offered by SBI, BoB, ICICI and HDFC Bank
Special scheme FD SBI for the elderly
The FD SBI special scheme for seniors will fetch an interest rate of 80 basis points (bps) above the rate applicable to the general public. Currently, SBI offers a 5.4% interest rate on five-year FD for the general public. If a senior places a fixed deposit under the FD special scheme, the interest rate applicable to the FD will be 6.20%. In the event of early withdrawal of these deposits, this additional interest, i.e. 30 basis points under the special scheme for seniors, will not be due. Therefore, if you opt for premature withdrawal of an FD under the scheme, your investment in fixed deposits will only reach 5.9%, which is 50 basis points above general customers.
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Special scheme FD HDFC Bank for the elderly
HDFC Bank offers a higher interest rate of 75 bps on these deposits. If a senior places a fixed deposit under HDFC Bank Senior Citizen Care FD, the interest rate applicable to the FD will be 6.25%. These rates are applicable from November 13th.
Bank ICICI special FD scheme for the elderly
ICICI Bank offers an 80 basis points higher interest rate on these deposits. The ICICI Bank Golden Years FD scheme offers seniors an interest rate of 6.30% per annum. 6.30%. These rates will take effect on October 21st.
Special FD program of Banca di Baroda for the elderly
Bank of Baroda offers 100 basis points more on these senior deposits. If a senior places a fixed deposit under the FD special scheme (over 5 years up to a maximum of 10 years), the interest rate applicable to the FD will be 6.25%. These rates are effective from November 16th.
In the midst of the coronavirus pandemic, these special FD schemes were introduced to safeguard the interests of the elderly as interest rates were falling rapidly. SBI has extended its FD special scheme for seniors until 31 March 2021, while HDFC Bank, ICICI, Bank of Baroda (BoB) special FD scheme will end on 31 December 2020.