Many major banks of the country had started special FD schemes for senior citizens during the Kovid-19 epidemic. Under this scheme, senior citizens get higher interest rates which are 50 basis points higher than the standard rate, in addition to the existing benefit of interest rates.
Banks like HDFC Bank, ICICI Bank, IDBI Bank, SBI had started special FD schemes, but recently SBI has extended the validity period of its WECARE Senior Citizens Term Deposit scheme till 31 March 2023. . However, HDFC Bank and IDBI Bank are going to end their special FD schemes for senior citizens from 1 October 2022.
HDFC Bank Special FD
On August 18, 2022, HDFC Bank last revised the interest rates on FDs below Rs 2 crore. Senior Citizen Care FD was introduced by HDFC Bank on May 18, 2020 and is active till September 30, 2022. This plan has a maturity period of 5 to 10 years, for which HDFC Bank offers 6.50% interest rate. This rate is 75 basis points higher than the standard rate of 5.75%.
According to the HDFC Bank website, “An additional premium of 0.25% (over and above the existing premium of 0.50%) will be paid to senior citizens who book FDs with tenures ranging from 5 years a day to 10 years for less than Rs 5 crore want to do. This scheme is valid from 18 May 2020 to 30 September 2022. This special offer will be applicable for fresh as well as renewal of FDs booked by senior citizens during the above period. This scheme is not applicable to ARIs.
Indian Bank Special FD
Private Sector IDBI Bank on April 20, 2022 introduced the “IDBI Naman Senior Citizen Deposit” special FD program for senior citizens. The maturity period of this special FD scheme ranges from more than one year to 10 years. Its validity period is from 20 April 2022 to 30 September 2022.
Senior citizens will get an additional interest rate of 0.25% over and above the existing additional rate of 0.50% p.a. on this special FD scheme, giving an overall additional benefit of 0.75%. Additional rates will be offered on new accounts as well as renewal deposits during the program’s valid period.