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Business News/ Money / Personal Finance/  Senior citizen special FD scheme: These banks to end this offer from 1st April
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Senior citizen special FD scheme: These banks to end this offer from 1st April

Special FD scheme for senior citizens: Various Indian banks like State Bank of India (SBI), ICICI Bank, Bank of Baroda, HDFC Bank, etc. offered special fixed deposit scheme for senior citizens, to help them counter the low interest regime after the outbreak of Covid-19 pandemic

Senior citizen special FD scheme: Under this fixed deposit scheme, senior citizens have been offered an additional annual interest rate on their tax saving FDs, which is beyond the traditional 50 bps additional return (Mint)Premium
Senior citizen special FD scheme: Under this fixed deposit scheme, senior citizens have been offered an additional annual interest rate on their tax saving FDs, which is beyond the traditional 50 bps additional return (Mint)

Senior citizen special FD scheme: In a bid to help senior citizens counter low interest regime after the outbreak of Covid-19 pandemic, various Indian banks like State Bank of India (SBI), ICICI Bank, Bank of Baroda, HDFC Bank, etc. offered special fixed deposit scheme for senior citizens around two years ago. Initially, this special FD scheme for elderly bank depositors were offered for a small period but they went on to extend its deadline as the Covid impact on tax regime of Indian banking system was still not over. 

But, after two years of this special FD scheme for 60 plus people, two banks — HDFC Bank and Bank of Baroda may end this special offer for senior citizens as the deadline for their special FD scheme for senior citizens at these banks is fast approaching and there is no further extension being announced by these banks.

Here we list out complete details of special FD scheme for senior citizens by these two banks:

HDFC Bank senior citizen special FD scheme: The private lender had introduced HDFC Bank Senior Citizen Care FD — offering an additional 25 bps FD interest rate on tax saving fixed deposit tenor i.e. 5 to 10 years fixed deposits. This additional 25 bps fixed deposit interest rate is in addition to the 50 bps interest rate being offered to senior citizens. So, this special FD scheme for senior citizens at HDFC Bank is giving senior citizens an opportunity to earn additional 0.25 per cent return on their fixed deposits provided the tenure of the deposit is 5 to 10 years. Deadline for this HDFC Bank Senior Citizen Care FD is 31st March 2022 and it may end from 1st April 2022 if there is no announcement of further extension of the scheme by the given deadline.

As per the revised HDFC Bank FD interest rates effective from 14th February 2022, annual interest rate offered on FD accounts for 5 year one day to 10 years for less than 2 crore deposits is 5.60 per cent. If the depositor is a senior citizen, in that case he or she will be given 6.35 per cent annual interest rate on one's deposit under the scheme. The offer will be valid on FD accounts after the deadline if the FD account is opened on or before 31st March 2022.

Bank of Baroda special FD scheme for senior citizens: This state-owned bank is also offering special FD scheme for senior citizens where a FD account holder aged above 60 years is given 1 per cent additional annual return on one's money. Like many Indian banks, Bank of Baroda is offering 0.50 per cent additional return to senior citizen FD account holders on 7 to 5 years tenor. However, on tax saving FDs, it is offering an additional 50 bps annual return to senior citizens.

As per Bank of Baroda website, it if offering 5.35 per cent annual return on tax saving FDs under the revised FD interest rate regime effective from 22nd March 2022. However, if the depositor is aged above 60 years, in that case the annual interest rate will jump to 6.35 per cent. However, the deadline for this special FD scheme is 31st March 2022 and the public sector bank hasn't announced any further extension of this scheme. If there is no further extension of the scheme is announced, in that case, the scheme will be deemed to be end from 1st April 2022.

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ABOUT THE AUTHOR
Asit Manohar
Chief Content Producer at Live Mint Digital Team
Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Check all the latest action on Budget 2024 here. Download The Mint News App to get Daily Market Updates.
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Published: 26 Mar 2022, 11:29 AM IST
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