This Private Bank Offers A Special FD Scheme With 7% Returns For Senior Citizens

IndusInd Bank provides a special fixed deposit scheme called 'Green Deposits' for retail investors, particularly older persons, who are looking for a decent debt investment option amid the covid-19 epidemic and dropping interest rates. Deposits made in this scheme will be used to support the projects of the organisations under United Nations Sustainable Development Goals (SDGs). One of the most astonishing aspects of this scheme is that older persons can receive 7% interest on their deposits.

Key benefits of IndusInd Bank 'Green Deposits'

• On fixed deposits of less than Rs 2 crore, the bank gives a maximum interest rate of 6.5 percent to the general public and 7 percent to senior people under the 'Green Deposits' scheme.
• Senior folks will receive an additional 0.50 percent annual return under the scheme.
• The scheme has a flexible duration ranging from 2 to 61 months.
• Deposits made under the scheme are insured up to Rs. 5 lacS by the DICGC.
• The scheme offers flexible options for interest payment. Interest is compounded quarterly and paid on a monthly basis or at maturity.
• Along with the FD Advice, the Fixed Deposit Holder will receive a green Deposit Certificate upon successful booking.
• Depositors will also get assurance certification from a consulting firm.
• Premature withdrawals from green deposits are subject to a 1% penalty from the bank.
• If an overdraft facility is taken out against a Green Fixed Deposit, and if the Green Fixed Deposit is closed (in full or in part) before maturity, it will no longer be a Green Fixed Deposit.
• The deposit can be made using the bank's net banking channels.

IndusInd Bank 'Green Deposits' Interest Rates

Under the green deposits of less than Rs 2 Cr maturing in 2 years to 61 months, IndusInd Bank is offering a 6.50% interest rate to the general public and 7% to senior citizens. Here are the bank's latest interest rates on green deposits which are effective as of 16th February 2022.

Tenure	Regular interest rate in % p.a.	Senior citizen interest rate in % p.a.
2 years to below 2 years 6 Months	6.5	7
2 years 6 Months to below 2 years 9 Months	6.5	7
2 years 9 months upto 3 years	6.5	7
Above 3 years upto 61 months	6.5	7
Source: Bank Website

Should you invest?

The green deposit scheme of IndusInd Bank is suitable for both the general public and older folks because it can be opened for a variable term of 2 years and up to 61 months. Regular depositors would receive a 6.50 percent return on their deposits, which is competitive and higher than interest rates offered by leading banks like SBI, HDFC, ICICI Bank, and Axis Bank on the said tenure.

The scheme's tenure brackets of 2 years to less than 2 years 6 months, 2 years 6 months to less than 2 years 9 months, 2 years 9 months up to 3 years, and above 3 years up to 61 months make it a must-consider option. Senior citizens, on the other hand, will receive a 7% return across all tenors, which is a point to consider here because several banks, including SBI, HDFC, and ICICI, provide special fixed deposit schemes to senior citizens that offer an additional benefit of 25 to 30 basis point over and above the existing rate of 0.50%.

However, the disadvantages of special deposit schemes include the long deposit tenure of 5 years and above up to 10 years, as well as the interest rate of 6.30 percent for SBI, 6.35 percent for HDFC and ICICI Bank, and when compared to green deposits offered by IndusInd Bank, senior citizens will not need to lock-in their deposits for longer and will receive a return of 7%, which is significantly higher than special deposit schemes.