ICICI Bank extends window of special FD for senior citizens

ICICI Bank, the country’s second-largest private sector lender, has extended the special fixed deposits for senior citizens by another six months. Now senior citizens can invest in these FDs carrying additional interest till April 8, 2022. Last month, other banks such as SBI, HDFC Bank and Bank of Baroda extended the window for these special FDs for senior citizens till March 31, 2022. To protect senior citizens during the pandemic, these banks had floated these special FDs in May last year. Under this scheme those above 60 years can get up to 1% additional interest on their deposits for the tenure of five years and above.

All senior citizens are eligible to invest in these schemes. Most banks are offering these services online.

Golden Years FD

These FDs were named by ICICI Bank as Golden Years Fixed Deposit. Under this scheme, resident senior citizens are 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 (for elders) of 0.50% per annum.

However, this additional interest rate is applicable only on deposits ranging between five years and 10 years. These are applicable to both new deposits and renewed deposits.

ICICI Bank offers 5.5% interest for the general public for FDs with tenure between five and 10 years.

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

SBI WeCare

SBI is offering 80 basis points or 0.8 percentage points 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 five-year FD. Under the special scheme the current interest rate is 6.20% 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 Senior Citizen Care

HDFC Bank has named its scheme for senior citizens as Senior Citizen Care FD. Investors get returns at a 6.25% interest rate on their investments on five-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 citizens is fixed at 6.25%, or 75 basis points higher than the normal rate.

Bank of Baroda Special FD

Bank of Baroda is providing senior citizens the maximum benefit by offering a full 1 percentage point higher than normal rates. While a customer below 60 years is paid 5.25% on an FD with a tenure between five to 10 years, those above 60 would get 6.25%.

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