SBI & HDFC Bank Extends Special Fixed Deposit Scheme For Senior Citizens

Leading banks in the country launched special fixed deposit schemes for senior citizens in the face of falling interest rates during the coronavirus pandemic in 2020. These initiatives were implemented for a limited time period, but the private sector lender HDFC Bank's special fixed deposit scheme for older residents has been extended. The bank's Senior Citizen Care FD scheme has been extended until September 30, 2022. The country's largest lender, State Bank of India (SBI) also offers a special fixed deposit scheme for senior citizens called "SBI Wecare" Deposit, which has been extended till September 30, 2022.

Note: Interest rates applicable on special fixed deposits of 5 years to 10 years for senior citizens are marked in bold.

SBI Wecare Deposit

"A special " SBI Wecare" Deposit for Senior Citizens introduced in the Retail TD segment wherein an additional premium of 30 bps (over & above the existing 50 bps as detailed in the above table) will be paid to Senior Citizen's on their retail TD for '5 Years and above' tenor only. "SBI Wecare" deposit scheme stands extended upto 30th September, 2022," SBI has mentioned on its website.

The bank offers a regular rate of 5.50 percent on domestic term deposits of less than Rs 2 crore maturing in 5 years and up to 10 years, but senior citizens under the special fixed deposit scheme will receive an interest rate of 6.30 percent, which is an additional premium of 30 basis points over and above the existing 50 basis points. The said interest rate will apply to new deposits as well as renewals of maturing accounts. These rates are applicable from 15.02.2022.

Tenors	Regular interest rate in % p.a.	For senior citizens
7 days to 45 days	2.9	3.4
46 days to 179 days	3.9	4.4
180 days to 210 days	4.4	4.9
211 days to less than 1 year	4.4	4.9
1 year to less than 2 year	5.1	5.6
2 years to less than 3 years	5.2	5.7
3 years to less than 5 years	5.45	5.95
5 years and up to 10 years	5.5	6.3
Source: Bank Website. W.e.f. 15.02.2022

HDFC Bank Senior Citizen Care FD

"An Additional Premium of 0.25% (over and above the existing premium of 0.50%) shall be given to Senior Citizens who wish to book the Fixed Deposit less than 5 crores for a tenure of 5 (five) years One Day to 10 Years, during special deposit offer commencing from 18th May'20 to 30th Sep'2022," HDFC Bank has mentioned on its website.

HDFC Bank offers a regular rate of 5.60 percent on fixed deposits of less than Rs 2 crore maturing in 5 years 1 day - 10 years, but if a senior citizen places a fixed deposit under the Senior Citizen Care FD, the interest rate will be 6.35 percent, which is an increase of 0.25 percent over and above the existing premium of 0.50 percent or 75 basis points (bps).

During the operational period of the plan, this special offer will be available to new fixed deposits as well as renewals of deposits made by senior citizens. These rates are in force from February 14, 2022.

Tenors	Regular interest rate in % p.a.	For senior citizens
7 - 14 days	2.50%	3.00%
15 - 29 days	2.50%	3.00%
30 - 45 days	3.00%	3.50%
46 - 60 days	3.00%	3.50%
61 - 90 days	3.00%	3.50%
91 days - 6 months	3.50%	4.00%
6 months 1 day - 9 months	4.40%	4.90%
9 months 1 day to less than 1 Year	4.40%	4.90%
1 Year	5.00%	5.50%
1 year 1 day - 2 years	5.00%	5.50%
2 years 1 day - 3 years	5.20%	5.70%
3 years 1 day- 5 years	5.45%	5.95%
5 years 1 day - 10 years	5.60%	6.35%
Source: Bank Website. W.e.f. 14.02.2022

Note

The private sector lender ICICI Bank also provides a unique fixed deposit scheme called "ICICI Bank Golden Years FD" for older individuals. Participants of this plan will get an additional 0.25 percent interest rate for a short period over and above the prevailing additional rate of 0.50 percent per annum.

During the scheme's existence, a higher rate will be offered on both new and renewal deposits. The bank offers a regular rate of 5.60 percent on deposits of less than Rs 2 crore maturing in 5 years 1 day to 10 years, but if a senior citizen places a fixed deposit under the "ICICI Bank Golden Years FD," the interest rate will be 6.35 percent, which is a significant rise of 0.25 percent over and above the existing additional rate of 0.50 percent per annum or 75 basis points.

The scheme is only available for a limited time, and according to ICICI Bank's official website, it will be valid until April 8, 2022.

Tenors	Regular interest rate in % p.a.	For senior citizens
7 days to 14 days	2.50%	3.00%
15 days to 29 days	2.50%	3.00%
30 days to 45 days	3.00%	3.50%
46 days to 60 days	3.00%	3.50%
61 days to 90 days	3.00%	3.50%
91 days to 120 days	3.50%	4.00%
121 days to 150 days	3.50%	4.00%
151 days to 184 days	3.50%	4.00%
185 days to 210 days	4.40%	4.90%
211 days to 270 days	4.40%	4.90%
271 days to 289 days	4.40%	4.90%
290 days to less than 1 year	4.40%	4.90%
1 year to 389 days	5.00%	5.50%
390 days to less than 15 months	5.00%	5.50%
15 months to less than 18 months	5.00%	5.50%
18 months to 2 years	5.00%	5.50%
2 years 1 day to 3 years	5.20%	5.70%
3 years 1 day to 5 years	5.45%	5.95%
5 years 1 day to 10 years	5.60%	6.35%
5 Years (80C FD) - Max to Rs 1.50 lac	5.45%	5.95%
Source: Bank Website. W.e.f. 20.01.2022