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4 Senior Citizens Special Fixed Deposit Schemes
Owing to the coronavirus pandemic which emerged last year some banks started offering special FD schemes for senior citizens in May 2020, with terms ranging from 5 to 10 years. As a result of the additional interest rate that senior citizens were now entitled to, an additional interest rate was added to their deposits in those schemes. Seniors who want to invest in a bank FD for the long run now have until June 30, 2021 to open a special FD scheme account. Senior citizens will earn a higher rate of interest on their deposits under the special FD scheme, which is in comparison to the current rate of 0.50 percent. This implies that an additional interest rate of 0.80 percent or more will be applied on deposits held for more than 5 years by senior citizens. Now let's take a look at banks which are providing special fixed deposit schemes.
Banks that are offering special FD schemes to senior citizens
State Bank of India (SBI), Bank of Baroda, ICICI Bank, and HDFC Bank, India's four largest commercial banks, have launched special fixed deposit schemes for senior citizens. Although standard FD schemes provide an additional 0.5 percent interest to depositors over the age of 60, special FD schemes for senior citizens provide a higher rate of interest. For the scheme's period, the additional rate will be valid on all new and renewed deposits. Now let's compare the interest rates on senior citizens' special FD schemes offered by SBI, ICICI, HDFC Bank, and Bank of Baroda.
SBI 'Wecare Deposit'
The SBI 'Wecare Deposit' special FD scheme for senior citizens pays an interest rate that is 80 basis points (bps) higher than the interest rate provided to the regular citizens. Under the special FD scheme, a senior citizen will be able to get an interest rate of 6.20% against his or her deposit. For periods ranging from 7 days to 10 years, below are the senior citizen FD rates provided by SBI for a deposit amount of less than Rs 2 Cr.
| Tenure | Senior Citizen FD Rates |
|---|---|
| 7 days to 45 days | 3.40% |
| 46 days to 179 days | 4.40% |
| 180 days to 210 days | 4.90% |
| 211 days to less than 1 year | 4.90% |
| 1 year to less than 2 year | 5.50% |
| 2 years to less than 3 years | 5.60% |
| 3 years to less than 5 years | 5.80% |
| 5 years and up to 10 years | 6.20% |
| Source: SBI, W.e.f. 08.01.2021 |
HDFC Bank Senior Citizen Care
On these deposits, HDFC Bank Senior Citizen Care FD offers senior citizens a 75 basis point higher interest rate. The interest rate applied to a fixed deposit made by a senior citizen under the special FD scheme is 6.25 percent respectively. The senior citizen FD rates provided by HDFC for a deposit amount of less than Rs 2 Cr are listed below for periods ranging from 7 days to 10 years.
| Tenure | Senior Citizen FD Rates |
|---|---|
| 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 days - 9 months | 4.90% |
| 9 months 1 day to less than 1 Year | 4.90% |
| 1 Year | 5.40% |
| 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. 13th Nov, 2020 |
ICICI Bank Golden Years
The ICICI Bank Golden Years FD scheme provides a 6.30 percent annual interest rate to senior citizens. For a limited period of time, customers who are resident senior citizens will receive an additional 0.30 percent interest rate on their fixed deposits, in addition to the current additional rate of 0.50 percent per annum. It is only applicable to single fixed deposits below Rs 2 crore. With terms ranging from 7 days to 10 years, the ICICI Bank's senior citizen FD rates for deposits of less than Rs 2 crore are framed below.
| Tenure | Senior Citizen FD Rates |
|---|---|
| 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 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 less than 18 months | 5.40% |
| 18 months days 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) | 5.85% |
| Source: ICICI Bank, W.e.f. October 21, 2020 |
Bank of Baroda Special FD Scheme
Senior citizens will get 100 basis points more on these deposits at Bank of Baroda (BoB). If a senior citizen holds a fixed deposit in the special FD scheme for more than 5 years and up to 10 years, then he or she will get an interest rate of 6.25%. The Bank of Baroda's senior citizen FD rates for deposits of less than Rs 2 crore are specified below.
| Tenure | Senior Citizen FD Rates |
|---|---|
| 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% |
| 1 year | 5.40% |
| Above 1 year to 400 days | 5.50% |
| Above 400 days and up to 2 Years | 5.50% |
| Above 2 Years and up to 3 Years | 5.60% |
| Above 3 Years and up to 5 Years | 5.75% |
| Above 5 Years and up to 10 Years | 6.25% |
| Source: BOB, W.e.f. 16/11/2020 |
Note
All deposits, including savings, fixed, current, and recurring, are insured by the DICGC. Every depositor in a bank is covered by insurance up to Rs 5,00,000 for both principal and interest amount deposited by him or her. The DICGC is a subsidiary of the RBI that insures deposits and guarantees credit facilities for all commercial banks that are registered under the regulations of RBI Act. The DICGC insures all commercial banks in India, including foreign bank branches, local area banks, and regional rural banks. As a result, making a fixed deposit at any of the above-mentioned banks is a safe bet. When it comes to risk-free investments, senior citizens should look at the Pradhan Mantri Vaya Vandana Yojana (PMVVY), Post Office Monthly Income Scheme (POMIS), and Senior Citizen Savings Scheme (SCSS) also.
