New Delhi: Bank fixed deposits as an instrument offer several benefits including an assured return as the returns do not fluctuate such as multiple asset classes, income tax benefits, and more. A senior citizen still has a chance to open a special fixed deposit for a period of five years or more. Special Fixed Deposit (FD) schemes for senior citizens offered by State Bank of India (SBI), HDFC Bank and Bank of Baroda (BoB) have been extended till 30 September 2021.
The special scheme was launched last year when the pandemic hit amid falling interest rates. Now banks have extended this scheme.
Here’s What Banks Are Offering To Senior Citizens
SBI’s special FD scheme for senior citizens
A special “SBI WeCare” deposit has been introduced for Senior Citizens in the Retail TD segment, wherein an additional premium of 30 bps (over the existing 50 bps mentioned in the above table) will be paid to Senior Citizens on their Retail TD. Period ‘5 years and above’ only. SBI said, “SBI WeCare” deposit scheme has been extended till 30 September 2021.
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For general customers, the bank is giving 5.4% interest rate on five-year FD. If a senior citizen opens a fixed deposit under a special FD scheme, the interest rate applicable on the FD will be 6.20 percent. These rates are applicable from 8 January 2021.
HDFC Bank’s special FD scheme for senior citizens
“An additional premium of 0.25% (over the existing premium of 0.50%) will be paid to senior citizens who wish to book fixed deposits of less than Rs 5 crore for a tenure of 5 (five) years a day to 10 years”, May 18 ‘During the special deposit offer commencing from 20th to 30th September’21,” the lender mentioned on its website.
The special FD scheme for senior citizens is called HDFC Senior Citizen Care. Under the special deposit, a senior citizen will get 75 bps higher interest rate. HDFC Bank is offering an interest of 6.25 per cent on opening fixed deposits under Senior Citizen Care FD. These rates are applicable from 21 May 2021.
Bank of Baroda’s special FD scheme for senior citizens
Bank of Baroda, on the other hand, is offering senior citizens 100 bps more on such special deposits. Under the Special FD Scheme (up to 5 years to 10 years), senior citizens will get 6.25 percent interest on FD. These rates are effective from 16 November. BoB said on its site, “1.00% is valid for a period “above 5 years to 10 years” and is valid till 30.09.2021.
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