ICICI Bank extends Covid-special fixed deposit window till October 7

The country’s second largest private sector lender ICICI Bank has extended the special Covid related fixed deposits for senior citizen. The special rates have been extended till October 7.

Last month other banks such as SBI, HDFC and Bank of Baroda extended the window for these special FDs for senior citizens till September 30.

ICICI Bank golden FD

These FDs have been named by ICICI Bank as Golden Years Fixed Deposit. Under this scheme, resident senior citizens would be eligible to get an additional interest rate of 0.30 percentage point or 30 basis points on their fixed deposits of less than Rs 2 crore, over and above the prevailing additional rate of 0.50% per annum.

However, this additional interest rate is applicable only on deposits of 5 years to 10 years and on new fixed deposits or renewed deposits. ICICI Bank offers 5.5% interest for the general public for FDs with tenure between 5 and 10 years.

Therefore, senior citizens are eligible to get 6.3% interest per annum below Rs 2 crore deposits.

This scheme was introduced by ICICI bank along with three other banks from May 20, 2020. It is now available till October 7.

Additional points

The bank has also clarified that a penalty rate of 1.30% would be charged in case of premature exit or withdrawal, whereas all other terms and conditions will remain the same for senior citizens who opted this special FD.

Bank of Baroda

The special FD scheme of Bank of Baroda provides senior citizens the maximum benefit by offering a full 1 percentage point or 100 basis points over and above the normal rates.

While a customer below 60 years will be paid 5.25% on an FD with tenure between 5 to 10 years, those above 60 would get 6.25%.

This rate is 50 basis points higher than the usual 50 basis points that senior citizens get.

SBI WeCare

SBI is offering 80 basis points or 0.8% higher than the usual interest rate on these FDs that were named as WeCare.

Currently, SBI offers the general public 5.40% interest rate on FDs between 5 and 10 years. Under the special scheme the current interest rate is 6.20% for senior citizens. After September 30, it would go back to 5.90% for senior citizens.

However, if the customer makes a premature withdrawal, the additional interest of 30 basis points over and above the 50 basis points offered to senior citizens as a matter of routine will not be paid.

HDFC Bank

HDFC Bank has named its scheme for senior citizens Senior Citizen Care FD. Investors get returns at a 6.25% interest rate on their investments on 5-year to 10-year FDs.

Usually, HDFC offers 5.5% interest rate to customers below 60 years. Under this scheme the interest rate for senior citizen is fixed at 6.25%, or 75 basis points higher than the normal rate.