Fixed deposits (FDs), also known as term deposits (TDs), are fixed-income instruments that yield guaranteed returns over a pre-defined period of lock-in. Lenders provide a range of maturity options to retail customers for setting up fixed deposits.
The interest rates offered on FDs are subject to change from time to time, which also varies from banks to banks. Senior citizens usually get a higher rate of interest on fixed deposits compared to the general public.
Amid the coronavirus pandemic, several banks also introduced a special FD scheme to safeguard the interests of senior citizens. These schemes are available only till today i.e. December 31, 2020.
These schemes offer extra interest rates over the existing rates on fixed deposits (FD) applicable for senior citizens.
Here's all one needs to know about special senior citizen FD scheme:
ICICI Bank special senior citizen FD scheme
This scheme is known as 'ICICI Bank Golden years FD'. Under this scheme, resident senior citizen customers can get an additional interest rate of 0.30 percent for a limited time over and above the existing additional rate of 0.50 percent per annum.
The additional rate is available on fresh deposits opened as well as deposits renewed during the scheme period. The eligible FD tenure is 5 years 1 day up to 10 years. It is applicable on a single FD of an amount less than Rs 2 crore.
In case the deposit opened in the above scheme is prematurely withdrawn/closed after, on, or after 5 years 1 day, the applicable penal rate is 1.30 percent. In case the deposit opened in above scheme is prematurely withdrawn/closed before 5 years 1 day, the prevailing premature withdrawal policy will be applicable.
HDFC Bank special senior citizen FD scheme
This scheme is known as 'Senior citizen care FD'. Customers can enjoy a 0.75 percent extra interest rate with this scheme. This offer is for resident senior citizens aged 60 years and above, (not applicable to NRI) who wish to book an FD less than Rs 5 crore for a tenure of 5 years one day to 10 years.
The offer is valid for all new/renewal of senior citizens FDs of less than Rs 5 crore.
(Edited by : Jomy)