Four schemes that fetch additional 30 basis points on FDs for five year tenure

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In a move to provide relief to the elderly who have lost all of their savings due to the Covid-19 pandemic, few banks had offered fixed deposit schemes in May last year. The duration of the schemes was anywhere between 5 and 10 years. They were designed to provide the benefit of additional interest to the people who are above the age of 60 years. However, three out of the four schemes including that of State Bank of India (SBI) cannot be availed after 30th of September.

Schemes offered by banks

1) SBI Wecare: In the retail segment, the SBI’s Wecare scheme provides an additional interest of 30 basis points for people above the age of 60 on their fixed deposit investments for five years or more. This is above the existing addition of 50 basis points. At present SBI is offering 6.20% interest rate on fixed deposit for five years and above to senior citizens.

2) Bank of Baroda special FD scheme: BoB is offering a special fixed deposit scheme for senior citizens offering an additional interest rate of 1% on the fixed deposit scheme, which comes with a tenure of 5 and 10 years. The senior citizen can avail the benefit of 6.25%, with this addition.

3) HDFC Bank Senior Citizen care: Over and above the existing Care FD on deposits, HDFC Bank is offering an additional 25 basis point interest to senior citizen, with a tenure above 5 to 10 years. This new benefit will give senior citizens an interest of 6.25%.

4) ICICI Bank Golden Years: ICICI bank’s Golden Years scheme is providing senior citizens an additional 0.3% interest annually on fixed deposits with a tenure between 5 and 10 years. Senior citizens will get a benefit of 6.30% interest rate. This will end on October 7 2021.