Banks launches special FD scheme for Senior citizens: What SBI, ICICI Bank, HDFC Bank offer

Bengaluru: Country’s largest lender State Bank of India (SBI), and private lenders HDFC Bank, and ICICI Bank have recently launched special fixed deposit (FD) schemes for senior citizens. This has been done to safeguard the interests of senior citizens as the interest rates are falling rapidly, the economy is in a bad shape due to the coronavirus pandemic which has affected the entire world. SBI was the first bank to announce a special FD scheme for senior citizens called SBI We Care.

Following the lead, HDFC Bank also announced a similar deposit scheme known as HDFC Senior Citizen Care FD. Likewise, ICICI Bank too came with a special term deposit scheme for senior citizens under the name of ICICI Bank Golden Years.

Some of the common features of Senior citizens special FD scheme by SBI, HDFC, and ICICI Bank are:

1) Senior citizens special FD scheme is applicable for tenure of 5 years or more.

2) The new interest rates applicable to fresh term deposits as well as existing deposits.

3) The special FD scheme for senior citizens is applicable till 30 September 2020.

4) SBI, HDFC Bank and ICICI Bank are offering extra interest rates over the existing senior citizen interest rates for fixed deposit.

5) The deposit amount is not limited to Rs. 1.5 lakh

6) Residents of 60 years or more are eligible to invest in Senior citizens special FD scheme.

SBI special FD scheme for senior citizens

-Name of the scheme: SBI We Care

-SBI made it available for customers from 12 May 2020

-Tenure: 5 Years

-New interest: 80 bps higher

-Interest rate: If a senior citizen puts a fixed deposit under the special FD scheme, then interest rate applicable to the FD will be 6.50%.

-Premature withdrawal: Additional premium of 30 bps not payable on premature withdrawal

Penalty of 0.5% may apply

Maximum deposit amount: Less than ₹2 crore

HDFC Bank special FD scheme for senior citizens

Name of the scheme: HDFC Senior Citizen Care

HDFC Bank made it available from 18 May 2020

Tenure: 5 years 1 day – 10 years

New interest: 75 bps higher

Interest rate: If a senior citizen puts a fixed deposit under HDFC Bank Senior Citizen Care FD, then interest rate applicable to the FD will be 6.50%. Under this new product, an additional 25 bps premium will be payable for senior citizens’

Premature withdrawal: Penalty of 1% if withdrawn on or before 5 years

Penalty of 1.25% if withdrawn after 5 years

Maximum deposit amount: Less than ₹5 crore

ICICI Bank special FD scheme for senior citizens

Name of the scheme: ICICI Bank Golden Years

ICICI Bank made it available from 20th May 2020.

Tenure: 5 years 1 day – 10 years

New interest: 80 bps higher

Interest rate: ICICI Bank Golden Years FD scheme offers senior citizens an interest rate of 6.55% per annum

Premature withdrawal: Penalty of 1% if withdrawn before 5 years 1 day

Penalty of 1.30% if withdrawn *after 5 years 1 day

Maximum deposit amount: Less than ₹2 crore