2 Special FD Schemes For Senior Citizens Which They Can Avail Before June

Last year, special fixed deposit (FD) schemes for senior citizens were introduced to provide them with a higher interest rate in the wake of the coronavirus pandemic. As a result, a special SBI Wecare Deposit for Senior Citizens was introduced by SBI under which Senior Citizens will enjoy an additional rate of 30 basis points over and above the current 50 basis points on their term deposit for tenors of 5 years and above only. On the other side, senior citizens who make a deposit of less than Rs 5 Cr for a maturity period of 5 years during the special deposit extension period of HDFC Bank i.e. June 30, 2021 will get an additional premium of 0.25 per cent over and above the existing premium of 0.50 per cent which is applicable for regular citizens. Hence, let's check out what SBI and HDFC Bank are currently offering to senior citizens until June 30, 2021 under their special FD scheme.

SBI Special FD Scheme For Senior Citizens

The interest rate on SBI's special FD scheme for senior citizens will be 80 basis points (bps) higher than the regular customers. SBI presently provides a 5.4 percent interest rate on five-year fixed deposits to the general public. The interest rate applied to a fixed deposit made by a senior citizen under the special FD scheme is 6.20 percent. Below are the current fixed interest rates for senior citizens of SBI which are in effect from January 2021.

Tenure	ROI in % for senior citizens for below Rs 2 Cr
7 days - 45 days	3.4
46 days - 179 days	4.4
180 days - 210 days	4.9
211 days - 364 days	4.9
1 year - 1 year 364 days	5.4
2 years - 2 years 364 days	5.6
3 years - 4 years 364 days	5.8
5 years - 10 years	6.2

HDFC Bank Special FD Scheme For Senior Citizens

Under its special FD scheme HDFC Bank offers 75 basis points (bps) higher interest rates compared to the general public. If a senior citizen holds a fixed deposit with HDFC Bank Senior Citizen Care FD, the interest rate will be 6.25 percent. The interest rate on an FD booked under the HDFC Bank Senior Citizen Care FD scheme that is prematurely closed (including a sweep in/partial closure) after 5 years will be 1.25 percent lower than the contracted rate or the base rate available for the period the deposit has maintained with the bank, whichever is lower. Below are the current fixed interest rates for senior citizens of HDFC Bank which are in effect from November 13, 2020.

Tenure	ROI in % for senior citizens for below Rs 2 Cr
7 - 14 days	3
15 - 29 days	3
30 - 45 days	3.5
46 - 60 days	3.5
61 - 90 days	3.5
91 days - 6 months	4
6 months 1 days - 9 months	4.9
9 months 1 day < 1 Year	4.9
1 Year	5.4
1 year 1 day - 2 years	5.4
2 years 1 day - 3 years	5.65
3 year 1 day- 5 years	5.8
5 years 1 day - 10 years	6.25

Note

Several banks, including ICICI and Bank of Baroda (BOB), also had introduced special FD schemes last year at the midst of the pandemic to offer a meritorious alternative to senior citizens at a time when interest rates were declining. ICICI Bank provides a separate FD scheme for senior citizens entitled 'ICICI Bank Golden Years'. The bank offers an 80 basis point higher interest rate on these deposits. The ICICI Bank Golden Years FD scheme offers senior citizens a 6.30 percent annual interest rate. These rates are in effect from 21 October 2020. On the other side, senior citizens will get a 100 basis point higher rate compared to the regular citizens on these deposits of Bank of Baroda. The interest rate on fixed deposits made under the special FD scheme (for a term of more than 5 years and up to 10 years) will be 6.25 percent. These rates are effective from 16 November 2020. It is important to remember you as a senior citizen is that both the special FD scheme of ICICI and BOB will end on March 31, 2021.