These banks offer extra interest rates over the existing rates applicable for senior citizen term deposits. The special FD scheme for senior citizens is applicable till September 30.
Special fixed deposit (FD) schemes for senior citizens have been introduced by many banks including State Bank of India (SBI), Bank of Baroda, HDFC Bank, and ICICI Bank. As interest rates are falling very fast, this scheme brought by banks is to safeguard the interests of senior citizens. Extra interest rates over the existing rates applicable for senior citizen term deposits are offered by these banks. Till September 30, the special FD scheme for senior citizens is applicable.
Here is what SBI offers under the special FD scheme for senior citizens
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– Known as ‘SBI We Care’.
– SBI made it available for customers from May 12, 2020.
– Tenure is of 5 years.
– New interest: 80 bps higher.
– 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. These rates are applicable effective May 27.
– Premature withdrawal : Additional premium of 30 bps not payable on premature withdrawal.
– A penalty of 0.5 percent may apply.
– Maximum deposit amount: Less than Rs 2 crore.
Here is what Bank of Baroda offers for senior citizens
– In the current challenging situation brought by COVID-19, the bank has agreed to pay an additional rate of interest in “Above 5 years to up to 10years” tenor to Resident Indian Senior Citizen and this is valid till September 30, 2020.
– New interest: 100 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 6.30 percent.
– On deposits maturing in 7 days to 10 years, Bank of Baroda pays 3.40 percent to 6.30 percent to senior citizens.
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– A penalty of 1.5 percent on applicable rate of interest for the period for which the deposit has remained with the bank.
HDFC Bank’s special FD scheme for seniors
– Called as ‘HDFC Senior Citizen Care’.
– HDFC Bank made it available from May 18, 2020.
– Tenure: 5 years and 1 day – 10 years.
– New interest: 75 bps higher.
– 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. 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 percent if withdrawn on or before 5 years.
– A penalty of 1.25 percent if withdrawn after 5 years.
– Maximum deposit amount: Less than Rs 2 crore.
ICICI Bank’s FD scheme for senior citizens
– Known as ‘ICICI Bank Golden Years’.
– ICICI Bank made it available from 20th May 2020.
– Tenure: 5 years 1 day – 10 years.
– New interest: 80 bps higher.
– ICICI Bank Golden Years FD scheme offers senior citizens an interest rate of 6.30 percent per annum.
– Premature withdrawal: Penalty of 1 percent if withdrawn before 5 years 1 day.
– A penalty of 1.30 percent if withdrawn after 5 years 1 day.
– Maximum deposit amount: Less than Rs 2 crore.
