ICICI Bank Extends Special FD Scheme For Senior Citizens: Details Inside

ICICI Bank, which was slated to discontinue its "Golden Years FD" plan for older residents on April 8th, has now extended the deadline to October 7th, 2022. This is particularly favourable for older persons, as it comes just one day after the RBI decided to leave policy rates unchanged.

On May 20, 2020, ICICI Bank announced the introduction of a special fixed deposit scheme called "Golden Years FD" for older individuals who have been negatively impacted by interest rate cuts. The bank guarantees resident senior citizens an additional interest rate of 0.25 percent over and above the existing additional rate of 0.50 percent per annum on new deposits and deposits renewed throughout the scheme period of 20th May 2020 to 7th October 2022.

Only fixed deposits of less than Rs 2 Cr with a duration of 5 years 1 day to 10 years are eligible for the additional interest rate benefit. The bank gives a regular interest rate of 5.60 percent on deposits maturing in the aforementioned tenor, but elderly people will receive a rate of 6.35 percent, which is an increase of 0.75 percent under the Golden Years FD.

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Premature withdrawals of Golden Years FDs made on or after 5 years 1 day would be levied with a 1.25 percent penalty, while premature withdrawals made before 5 years 1 day will be subject to ICICI Bank's current premature withdrawal regulation.

Two other major banks, State Bank of India (SBI) and HDFC Bank, established special fixed deposit schemes for older persons in the year 2020 when the interest rate cycle was significantly impacted owing to the downturn in the economy triggered by COVID-19. SBI has a special FD scheme for older persons called "SBI Wecare," which has a 5-year to 10-year term. The bank gives a regular rate of 5.50 percent on this tenor, while elderly folks will receive a rate of 6.30 percent, a 0.80 percent increase. "A special " SBI Wecare" Deposit for Senior Citizens introduced in the Retail TD segment wherein an additional premium of 30 bps (over & above the existing 50 bps as detailed in the above table) will be paid to Senior Citizen's on their retail TD for '5 Years and above' tenor only. "SBI Wecare" deposit scheme stands extended upto 30th September, 2022," SBI has mentioned on its website.

HDFC Bank has a special fixed deposit programme for elderly adults called Senior Citizen Care FD, which is available till September 30, 2022. The scheme has a tenor of 5 years 1 day - 10 years, and the bank provides elderly citizens an interest rate of 6.35 percent, which is higher by 0.75 percent than the standard rate. "An Additional Premium of 0.25% (over and above the existing premium of 0.50%) shall be given to Senior Citizens who wish to book the Fixed Deposit less than 5 crores for a tenure of 5 (five) years One Day to 10 Years, during special deposit offer commencing from 18th May'20 to 30th Sep'2022," HDFC Bank has mentioned on its website.