Few days back Reserve Bank of India had hiked the repo rate by 40 basis points in its unscheduled meet held on May 4. Soon after the Central Bank's decision to raise the repo rate, many banks decided to hike the interest rates on fixed deposits. Now ICICI Bank has decided to hike interest rates on special terms deposits meant for senior citizens and the new rates has already come into effective from May 21, 2022.
ICICI Bank is offering a term deposit scheme that caters to senior citizens known as Golden Years FD. The scheme is a special FD scheme wherein senior citizens become eligible to receive additional interest rates along with an additional benefit of 0.50%.
Under Golden Years FD scheme, senior citizens were getting an interest rate of 6.35% on their deposits. Now after the hike senior citizen will get 6.50% interest rates. The new rates came into effect beginning from May 21, 2022. The scheme was launched keeping in mind the interests of senior citizens. Under Golden FD scheme, senior citizens get additional rate of interest.
The Golden FD scheme was launched when coronavirus pandemic spread globally and infected millions. The FD was precisely launched on May 20, 2020. Golden FD Scheme is applicable on single fixed deposits below Rs 2 crore.