Fixed Deposits: Fixed deposits are considered to be one of the most preferred investment options in India. It is special because it gives capital guarantee of return to the investors.
- Senior citizens can get 0.50 percent additional interest on special FD schemes as compared to ordinary citizens.
- The regular interest option helps senior citizens to get a steady income in their post-retirement life.
- Two schemes of HDFC Bank and Bank of Baroda are closing on 31st March 2022.
Fixed Deposit: Many banks offer special fixed deposit (FD) schemes for senior citizens. People above 60 years of age get higher interest rates on FDs than ordinary citizens. They also get the benefit of regular interest payments and multiple tenors along with additional interest.
The tenor of these special FD schemes can be from a minimum of 7 days to a maximum of 10 years. Major lenders like SBI, HDFC Bank, ICICI Bank, Axis Bank and IndusInd Bank etc. have increased the interest rates on their FDs.
Many banks had started these special FD schemes amid the pandemic, but now HDFC Bank and Bank of Baroda are phasing out such schemes for senior citizens from March 31. Let us know about these schemes-
HDFC Bank
launched HDFC Bank Senior Citizen Care FD in May 2020. It will expire on 31 March 2022. Under this, senior citizens get an additional 0.25 per cent premium for deposits of less than Rs 5 crore on tenures ranging from 5 to 10 years. The regular premium under the plan is 0.50%.
The bank gives a return of 5.60 per cent on FDs of less than Rs 2 crore maturing in 5 years 1 day to 10 years, while elderly individuals get a profit of 6.35 per cent.
Bank of Baroda (Bank of Baroda, BoB)
Bank of Baroda had started a special scheme in 2020 and now it will end on 31 March 2022. Under this, senior citizens get additional interest on FDs of less than Rs 2 crore. The bank offers an additional 0.50% return to senior citizens on FDs of less than Rs 2 crore maturing in 7 days to 5 years. At the same time, they are given an additional 1% return on fixed deposits for 5 years to 10 years.
Bank of Baroda offers a regular interest rate of 5.25 per cent on term deposits maturing more than 5 years and up to 10 years, but the elderly get an interest rate of 6.25 per cent.
