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SBI, HDFC Bank, ICICI Bank special senior citizens FDs; Know additional rates, deadlines, details here

Senior Citizens are the biggest beneficiaries as banks offer additional interest rates on their FDs. (Aniruddha Chowdhury/Mint)Premium
Senior Citizens are the biggest beneficiaries as banks offer additional interest rates on their FDs. (Aniruddha Chowdhury/Mint)

  • There are various special fixed deposit schemes introduced especially for senior citizens by banks like SBI, HDFC Bank, ICICI Bank, Bank of Baroda, and Axis Bank among others. The term of FDs can vary from a minimum of 7 days to a maximum of 10 years and their interest rates range accordingly.

Fixed deposits have a wide range of benefits such as secure investments, guaranteed rate of returns, risks free, tax benefits, and flexibility among others. FDs are an ideal form of investment for senior citizens who cannot bear to take market risks. Not just that, elderlies are also the biggest beneficiaries as banks offer additional interest rates on their FDs. Currently, to attract depositors, major banks have started to raise their fixed deposits interest rates from this month on various tenures.

Furthermore, there are various special fixed deposit schemes introduced especially for senior citizens by banks like SBI, HDFC Bank, ICICI Bank, Bank of Baroda, and Axis Bank among others. Under these special schemes, a senior citizen can enjoy premium returns with additional rates varying from 0.25 basis points to 1% over the normal rates, however, these are different from bank to bank. The term of FDs can vary from a minimum of 7 days to a maximum of 10 years and their interest rates range accordingly.

Here's a list of three special FD schemes and validity for senior citizens by major banks:

State Bank of India (SBI):

SBI has launched a special deposit scheme for senior citizens named "SBI Wecare". The special scheme is launched under the retail term deposit segment of SBI, where, an additional premium of 30 basis points (over & above the existing 50 basis points) will be paid to Senior Citizens on their retail deposits for '5 Years and above' tenor only. The scheme is available till September 30, 2022.

At present, SBI offers a 6.30% interest rate to senior citizens on their FDs below 2 crore on 5 years to 10 years tenor. The bank had increased FD rates on deposits below 2 crore by 5 basis points to 10 basis points on February 15, 2022.

To senior citizens, the bank offers a 5.95% rate on 3 years to less than 5 years tenure, while 5.70% is given on 2 years to less than 3 years, and 5.60% on 1 year to less than 2 years. The bank offers a 4.90% rate each on between 180 days to less than 1-year tenures, 4.40% applies on 46 days to 179 days, and 3.40% which is the lowest rate, is implied on 7 days to 45 days tenure.

ICICI Bank:

ICICI Bank Golden Years FD Rates with effect from January 20, 2022, offers an exclusive additional interest rate of 0.25% per annum on FDs above 5 years tenure to senior citizens. The scheme is available till April 08, 2022, as per the bank's website.

Notably, ICICI Bank on its website says, "Resident Senior citizen customers, will get an additional interest rate of 0.25% for a limited time over and above the existing additional rate of 0.50% per annum." The additional rate will be available on fresh deposits opened as well as deposits renewed during the scheme period. The scheme applies to FDs from May 20, 2020, to April 08, 2022. The value for fixed deposits is below 2 crore.

Under its premature withdrawal terms, 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 will be 1.25%. In case the deposit opened in the scheme is prematurely withdrawn/closed before 5 years 1 day, the prevailing premature withdrawal policy will be applicable.

Currently, ICICI Bank offers a 6.35% interest rate to senior citizens on 5 years 1 day to 10 years tenure, while 5.95% is offered on 3 years 1 day to 5 years, and 5.70% on 2 years 1 day to 3 years. The lender gives a 5.5% rate between 1 year to less than 2 years tenure, whereas 4.9% is provided on 185 days to less than 1-year tenure, 4% on 91 days to 184 days, 3.5% on 30 days to 90 days, and 3% on 7 days to 29 days tenure.

HDFC Bank:

HDFC Bank has extended its special senior citizen fixed deposits to September 30, 2022, from previous March 31, 2022. The bank offers an Additional Premium of 0.25% (over and above the existing premium of 0.50%) to senior citizens who plan to open FDs below 5 crore and for tenures above 5 years 1 day to 10 years. This special offer will apply to new Fixed Deposit booked as well as for the Renewals, by Senior Citizens during the above period. This offer does not apply to Non-Resident Indians.

Just like ICICI Bank, the private banker also offers a 6.35% rate on FDs below 2 crore on 5 years 1 day - 10 years tenure. However, the interest rate is 5.35% on FDs between 2 crore to 5 crore on the same tenures.

In FDs below 2 crore, a senior citizen can enjoy a 3.5% rate of return on 30 days to 90 days tenure, while 4% is offered on 91 days - 6 months, 4.90% on 6 months to less than 1 year. Whereas 5.50% is given from 1 year to 2 years. 5.70% is applicable on 2 years 1 day - 3 years tenure and a 5.95% rate is given on 3 years 1 day- 5 years tenure.

For FDs between 2 crore to less than 5 crore, senior citizens get 3.25% on 30 days to 60 days, 3.5% is levied on 61 - 90 days, 3.85% is applicable on 91 days - 6 months, 4.10% is offered on 6 months 1 day - 9 months, and 4.20% is given on 9 months 1 day to less than 1 year. A senior citizen can enjoy a 4.55% rate on 1 year, while 4.70% is given on 1 year 1 day - 2 years, 5% on 2 years 1 day - 3 years, and 5.10% on 3 years 1 day- 5 years.

At present, HDFC Bank offers 3% on tenures from 7 days to 29 days on FDs less than 2 crore and between 2-5 crore.

 

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