Senior citizens special fixed deposit (FD) scheme: State Bank of India (SBI), HDFC Bank, and ICICI Bank, Bank of Baroda (BoB) have special fixed deposit (FD) scheme for senior citizens. Under this scheme, these banks are offering extra interest rates over the existing rates applicable for them on term deposits. Usually the banks offer higher interest rates for the senior citizens as compared to the others.
Let’s take a look at the senior citizens special FD scheme interest rates offered by SBI, BoB, ICICI and HDFC Bank
SBI special FD scheme for senior citizens
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% interest rate on five years FD for the general public. If a senior citizen puts a fixed deposit under the special FD scheme, then interest rate applicable to the FD will be 6.20%. 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 a FD under the scheme, your fixed deposit investment will fetch only 5.9% i.e. 50 bps above the general customers.
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HDFC Bank special FD scheme for senior citizens
HDFC Bank offers 75 bps higher interest rate on these deposits. If a senior citizen puts a fixed deposit under HDFC Bank Senior Citizen Care FD, then interest rate applicable to the FD will be 6.25% . These rates are applicable from 13 November.
ICICI Bank special FD scheme for senior citizens
ICICI Bank offers 80 bps higher interest rate on these deposits. ICICI Bank Golden Years FD scheme offers senior citizens an interest rate of 6.30% per annum. 6.30%. These rates are effective 21 october.
Bank of Baroda special FD scheme for senior citizens
Bank of Baroda offers 100 bps higher on these deposits to senior citizens. If a senior citizen puts a fixed deposit under the special FD scheme (above 5 years to up to 10 years), then interest rate applicable to the FD will be 6.25%. These rates are effective from 16 November.
Amid the coronavirus pandemic, these special FD schemes were introduced to safeguard the interests of senior citizens as the interest rates were falling rapidly. SBI has extended its senior citizens special FD scheme till 31 March 2021, while special FD scheme of HDFC Bank, ICICI, Bank of Baroda (BoB) will end on 31 December 2020.
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