Among the debt category investors, especially senior citizens who want to seek a long-term capital appreciation, investing in the fixed income category or fixed deposits of banks for assured returns with a promise of deposit safety provided by DICGC is highly preferred. However, banks had started cutting interest rates on fixed deposits last year as the Reserve Bank of India had kept the policy rates low across the year till now. To counter the same, some leading banks of our country such as State Bank of India, HDFC Bank, ICICI Bank, and Bank of Baroda had introduced special fixed deposit schemes for senior citizens last year. In the face of declining interest rates, these banks launched the below-mentioned special FD schemes for older persons with a tenor ranging from 5 years and above.
SBI ‘WECARE’ Senior Citizens’ Term Deposit Scheme
Senior citizens will receive additional interest on their term deposits if they invest for a tenor of 5 to 10 years under this deposit scheme of State Bank of India (SBI). They will be paid an additional rate of 30 basis points over and above the existing premium of 50 basis points over the public card rate, for a total of 80 basis points over the public card rate. The interest will be paid on a monthly or quarterly basis.
This scheme is applicable to new deposits as well as renewals of maturing deposits, and TDS will be levied in accordance with the Income Tax Act. SBI now provides a 5.4 percent interest rate on five-year FDs to the general public. Senior citizens will receive a 6.20 percent interest rate on deposits of less than Rs 2 crore under the special FD scheme. SBI's current fixed deposit interest rates for senior citizens can be found here.
|Tenor||Interest Rates In %|
|7 days to 45 days||3.4|
|46 days to 179 days||4.4|
|180 days to 210 days||4.9|
|211 days to less than 1 year||4.9|
|1 year to less than 2 year||5.5|
|2 years to less than 3 years||5.6|
|3 years to less than 5 years||5.8|
|5 years and up to 10 years||6.2|
|Source: SBI, W.e.f. 08.01.2021|
HDFC Bank Senior Citizen Care FD
Senior Citizens who make a deposit of less than 2 crores for a duration of 5 (five) years 1 day to 10 Years during the special deposit offer beginning from 18th May'20 to 30th Sep'21 will receive an additional premium of 0.25 percent over and above the existing premium of 0.50 percent. During the aforementioned duration, this special deal will be available to new fixed deposits as well as renewals.
Non-Resident Indians are not eligible for this special fixed deposit scheme of HDFC Bank. If a term deposit made under the scheme is prematurely closed, including sweep-in / partial closure, on or before 5 years, the interest rate will be 1.00 percent lower than the contracted rate or the base rate applicable for the term the deposit has been with the bank, whichever is lower.
The interest rate will be 1.25 percent below the contractual rate or the base rate applicable for the duration the deposit has stayed with the bank, whichever is lower, if a term deposit made under the scheme is prematurely closed, including sweep-in / partial closure after 5 years by a senior citizen. The most recent senior citizens' fixed deposit interest rates of HDFC Bank are listed below.
|Tenor Bucket||Senior Citizen Rates (per annum)|
|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 to less than 1 Year||4.90%|
|1 year 1 day - 2 years||5.40%|
|2 years 1 day - 3 years||5.65%|
|3 year 1 day- 5 years||5.80%|
|5 years 1 day - 10 years||6.25%|
|Source: HDFC Bank, W.e.f. 21st May 2021|
ICICI Bank Golden Years Fixed Deposit
Senior citizens will get an additional interest rate of 0.30 percent per year on their fixed deposits of 5 years 1 day up to 10 years under this special fixed deposit scheme, in addition to the prevailing additional rate of 0.50 percent per year. During the scheme's existence, the additional rate will be offered on both new and renewing deposits.
The special fixed deposit scheme of ICICI Bank will be available until October 7, 2021. Only deposits of less than Rs 2 crore are eligible under this scheme. The applicable penalty rate will be 1.30 percent if a deposit made under the scheme is prematurely withdrawn/closed on, or after 5 years 1 day.
If a deposit opened under the special deposit scheme is withdrawn or closed before 5 years and 1 day, the current premature withdrawal rule will apply. Interest rates on fixed deposits for senior citizens of ICICI Bank are mentioned below.
|Maturity Period||Senior Citizen Rates (per annum)|
|7 days to 14 days||3.00%|
|15 days to 29 days||3.00%|
|30 days to 45 days||3.50%|
|46 days to 60 days||3.50%|
|61 days to 90 days||3.50%|
|91 days to 120 days||4.00%|
|121 days to 150 days||4.00%|
|151 days to 184 days||4.00%|
|185 days to 210 days||4.90%|
|211 days to 270 days||4.90%|
|271 days to 289 days||4.90%|
|290 days to less than 1 year||4.90%|
|1 year to 389 days||5.40%|
|390 days to < 18 months||5.40%|
|18 months to 2 years||5.50%|
|2 years 1 day to 3 years||5.65%|
|3 years 1 day to 5 years||5.85%|
|5 years 1 day to 10 years||6.30%|
|5 Years (80C FD) - Max to Rs 1.50 lac||5.85%|
|Source: ICICI Bank, W.e.f. Oct 21, 2020|
Bank of Baroda Special Fixed Deposit Scheme
Bank of Baroda (BoB) offers an additional rate to senior citizens for a deposit amount of less than Rs 2 Cr. However, under the special fixed deposit scheme, elderly persons would get an extra rate of 1.00 percent for tenors of "Above 5 years to up to 10 years," which will be valid until September 30, 2021.
|Tenors||Senior Citizen Rates (per annum)|
|7 days to 14 days||3.30%|
|15 days to 45 days||3.30%|
|46 days to 90 days||4.20%|
|91 days to 180 days||4.20%|
|181 days to 270 days||4.80%|
|271 days & above and less than 1 year||4.90%|
|Above 1 year to 400 days||5.50%|
|Above 400 days and upto 2 Years||5.50%|
|Above 2 Years and upto 3 Years||5.60%|
|Above 3 Years and upto 5 Years||5.75%|
|Above 5 Years and upto 10 Years||6.25%|
|Source: BoB, W.e.f. 16.11.2020|