These 2 Banks Ending Special FD Schemes For Senior Citizens In March

Special fixed deposit (FD) programmes for older persons are a special type of term deposit in which banks charge an additional premium in addition to the existing premium. In the year 2020, lenders such as State Bank of India, HDFC Bank, ICICI Bank, and Bank of Baroda established these schemes to provide better interest rates to older individuals. Due to the low-interest rate regime of banks affected by COVID-outbreak special FD schemes were launched by the banks 2 years ago, but lenders like HDFC Bank and Bank of Baroda (BoB) are going to end special fixed deposits schemes for senior citizens in March. Let us know when the schemes are set to expire and what interest rates these two banks are offering on special FD schemes.

HDFC Bank Senior Citizen Care FD

This special FD scheme was introduced on May 18, 2020, and it will expire on March 31, 22. Senior citizens who register fixed deposits of less than Rs 5 Cr for a long-term tenure of 5 to 10 years would receive an additional premium of 0.25 percent over and above the regular premium of 0.50 percent under this plan.

During the aforesaid time, this special offer will be available to new fixed deposits as well as renewals made by senior citizens. Non-Resident Indians are not eligible for this offer. ​​​​​​​The bank offers a regular interest rate of 5.60 percent on domestic term deposits of less than Rs 2 crore maturing in 5 years 1 day - 10 years, while elderly persons will receive a rate of 6.35 percent, which is an addition of 0.25 percent + 0.50 percent.

HDFC Bank last updated fixed deposit interest rates on 14th Feb 2022 and currently senior citizens will get the following interest rates on their term deposits of less than Rs 2 Cr.

Tenure	Interest rate p.a. for senior citizens
7 - 14 days	3.00%
15 - 29 days	3.00%
30 - 45 days	3.50%
46 - 60 days	3.50%
61 - 90 days	3.50%
91 days - 6 months	4.00%
6 months 1 day - 9 months	4.90%
9 months 1 day < 1 Year	4.90%
1 Year	5.50%
1 year 1 day - 2 years	5.50%
2 years 1 day - 3 years	5.70%
3 year 1 day- 5 years	5.95%
5 years 1 day - 10 years	6.35%
Source: Bank Website

Bank of Baroda

This public sector lender also authorised a one-of-a-kind term deposit scheme, which began in 2020 and will expire on March 31, 2022. "In the current challenging situation brought by COVID-19, Bank has agreed to continue to pay additional rate to Resident Senior Citizen for less than RS.2.00 Crores," Bank of Baroda (BoB) has mentioned on its website.

On domestic term deposits of less than Rs 2 Cr maturing in 7 days to 5 years, the bank offers an additional rate of 0.50% to senior citizens. But senior citizens who book a fixed deposit for 5 years to 10 years will get an additional rate of 1%.

The bank gives a regular interest rate of 5.25 percent on term deposits maturing in more than 5 years and up to 10 years, but elderly people will receive a rate of 6.25 percent, which is an increase of 1 percent instead of 0.50 percent additional. Resident Indian senior citizens are eligible for this program, which will expire soon.

Tenure	Interest rate p.a. for senior citizens (W.e.f. 25.02.2022)
7 days to 14 days	3.3
15 days to 45 days	3.3
46 days to 90 days	4.2
91 days to 180 days	4.2
181 days to 270 days	4.8
271 days & above and less than 1 year	4.9
1 year	5.5
Above 1 year to 400 days	5.6
Above 400 days and upto 2 Years	5.6
Above 2 Years and upto 3 Years	5.6
Above 3 Years and upto 5 Years	5.75
Above 5 Years and upto 10 Years	6.25
Source: Bank Website.

Note

Senior citizens can still take advantage of special fixed deposit programmes offered by the country's largest lender, State Bank of India, and the country's leading private sector lender, ICICI Bank. SBI provides an "SBI Wecare" Deposit for senior citizens, which includes a 30 basis point premium over and above the standard 50 basis point premium.

This additional benefit will only be provided to senior citizens who have a retail term deposit with a tenor of '5 Years and Above.' The deposit plan "SBI Wecare" has been extended until September 30, 2022. SBI offers a regular interest 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 elderly persons would receive a rate of 6.30 percent, which is a 30 basis point increase over the existing 50 basis point rate.

The "Golden Years FD" is a unique fixed deposit offered by ICICI Bank for older individuals. Customers with an ICICI Bank Golden Years FD will receive an additional 0.25 percent interest rate for a limited time over and above the existing additional rate of 0.50 percent per annum. Fixed deposits with a term of five years and one day to ten years are eligible for the scheme.

This program started on May 20, 2020, and will continue until April 8, 2022. During the scheme's duration, a higher rate will be offered on both new and renewal deposits. This additional rate advantage will apply to single FDs of less than 2 crores. ICICI Bank offers a standard rate of 5.60 percent on deposits maturing in 5 years, 1 day to 10 years, but senior persons will receive a rate of 6.35 percent, which is a 0.25 percent increase above the existing additional rate of 0.50 percent per annum valid until April 8, 2022.