Special FD scheme: Check which bank offers best rates to senior citizens

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Fixed deposit (FD) is one of the safest avenues of investment and is much sought after by a large section of the population, mostly senior citizens. In the wake of the ongoing Covid-19 pandemic, the country’s four major public and private sector banks recently extended the deadline of senior citizens special fixed deposit schemes for another three months. These FD schemes offered by State Bank of India (SBI), HDFC Bank and Bank of Baroda (BoB) have been extended till September 30, 2021. On the other hand, ICICI Bank, country’s second largest private sector lender, has extended this special fixed deposit till October 7, 2021.

The scheme

When the pandemic struck last year crippling the economy and shrinking income streams of everybody, a few major banks began offering higher interest rates to senior citizens on fixed deposits of tenures 5 years and above.

All senior citizens are eligible to take the benefit of these special offers.

Senior citizens are, in the usual course of business, offered higher interest rates of 50 basis points. This additional interest was over and above that rate. Take a look at which bank offers maximum return to senior citizens.

SBI scheme

SBI is offering 30 basis points or 0.30% 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.

HDFC Bank scheme

HDFC Bank has named its scheme for senior citizens Senior Citizen Care FD. Under this scheme, the country’s largest private sector bank offers an additional 0.25%.

Usually, HDFC offers 5.5% interest rate on FDs tenure between 5-year to 10-year to customers below 60 years. Under this scheme the interest rate for senior citizens is fixed at 6.25%.

Bank of Baroda scheme

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 rates for the general public.

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 than what senior citizens get.

ICICI Bank scheme

These special FDs have been 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 of 0.50% per annum on deposits of 5 years to 10 years.

ICICI Bank offers 5.5% interest for the general public for FDs with tenure between 5 and 10 years. But senior citizens are eligible to get 6.3% interest per annum below Rs 2 crore deposits.