The senior citizens' special fixed deposit (FD) scheme of HDFC Bank, ICICI Bank and Bank of Baroda (BoB) will come to an end on 31 December 2020. On the other hand, State Bank of India (SBI) has extended it further till 31 March 2021.
After steep deductions in FD interest rates due to a cut in repo rate by the RBI to fight the economic effects of COVID-19 outbreak, SBI first introduced a limited period special FD scheme in May, to safeguard the interests of senior citizens. Soon all major banks also offered their customers these special deposit scheme.
Senior citizens are known to place their savings in FDs for monthly income. The scheme period, which was earlier offered till September, was extended to 31 December 2020.
HDFC Bank's scheme is known as the 'HDFC Senior Citizen Care' and provides 0.75% higher interest rate on these deposits. 'ICICI Bank Golden Years' scheme offers 0.80% higher interest over regular rates, while Bank of Baroda is providing a whole one percent extra over its existing rates.