Banks extend special FD schemes for senior citizens; details here

During the first wave of the COVID-19 last year, nationalised and private banks such as the State Bank of India (SBI), HDFC Bank, ICICI Bank and Bank of Baroda (BoB) had introduced special FD schemes for senior citizens for a tenure of five years and more.

The scheme has been extended till September 30 this year.

Under the "Special SBI Wecare" deposit for senior citizens, an additional premium of 30 bps (basis points) over and above the existing 50 bps will now be paid. Introduced in the Retail TD segment, the scheme holds good only for a tenure of five years and above.

In percentage terms, SBI under the general public currently offers 5.4 percent interest rate on their fixed deposits for five years and above. A senior citizen opting for a fixed deposit under the special FD scheme would be offered 6.20 percent.

India’s number one private banker has also increased the interest rates for senior citizens under the special FD scheme for senior citizens under the HDFC Senior Citizen Care.

The bank offers 75 bps higher interest rate on these deposits. The interest rate applicable to the FD would be 6.25 percent and is applicable for senior citizens who wish to deposit less than Rs 5 crore for a tenure of 5 years, one day to 10 years.

Another nationalised bank, Bank of Baroda offers 100 bps higher for a senior citizen who prefers to bank with them. A senior citizen under the special FD scheme with a tenure of 5 years up to 10 years gets an interest rate of 6.25 percent.