Fixed deposit (FD) facilities are dear to senior citizens since it is the most common safe instrument for them to park a large sum of money in exchange for regular income in the form of interest.
After a significant cut in repo rates by the Reserve Bank of India (RBI) to support the Indian economy damaged by COVID-19, banks immediately started deducting interest rates offered on FDs of all tenures. Naturally, senior citizens looking to renew or create these deposits were left to make a long term decision at meagre rates.
While all banks offer at least 0.5 percent additional interest to residents over 60 years of age, leading banks, starting with the State Bank of India (SBI), announced special FDs for senior citizens amid COVID-19, that offer higher interest rates.
Apart from SBI, Bank of Baroda, Punjab National Bank, HDFC Bank, and ICICI Bank also have this special offer will give extra interest rate over the existing rates applicable for senior citizen term deposits.
Good news is that amid falling FD rates, this special FD scheme for senior citizens has been extended by all of the above banks till 31 December 2020.
SBI's special FD scheme for senior citizens is known as 'SBI Wecare' and offers 0.30 percent extra over the already 0.5 percent additional interest applicable. A total of 0.80 percent additional interest is available on fresh deposit, as well as, renewal of maturing deposits, when locked for a minimum tenure of 5 years.
Bank of Baroda offers 1 percent extra interest over existing rates on its special FD for senior citizens, which also has a minimum lock-in period of 5 years.
HDFC Bank's 'HDFC Senior Citizen Care' offers a 0.75 percent higher interest rate on FDs over current rates. Meanwhile, ICICI Bank's scheme is called ICICI Bank Golden Years and offers 0.80 percent higher interest on these deposits.
The article is purely informational and is not a solicitation to buy, sell in securities mentioned in the article. Greynium Information Technologies Pvt Ltd, its subsidiaries, associates and the author do not accept culpability for losses and/or damages arising based on information in this article.