ICICI Bank has introduced a special fixed deposit (FD) scheme for senior citizens called ‘ICICI Golden Years FD’. ‘ICICI Bank Golden Years FD’ scheme offers senior citizens an interest rate of 6.55% per annum for deposits up to 2 crores with a tenure of more than five years to 10 years.

The interest rate offered in this scheme is 30 basis points higher than the rate offered by the bank previously. This new scheme will be available for investment between May 20 and September 30, 2020. The higher interest will also be applicable to the renewal of existing FDs, the bank said.

“We at ICICI Bank have always valued our relationship with senior citizens. We know that FD interest is a key source of income for a large section of senior citizens. Keeping this in mind, we are offering higher interest rates to them through the new scheme, even in the declining interest rate regime, as a mark of our respect to them. We believe that this scheme will help them to create a good pension kitty on their long-term deposit and thereby enhance their convenience,” said Pranav Mishra, Head – Liabilities Group, ICICI Bank.

Here are key features of the ICICI Golden Years FD scheme

1) All resident senior citizens will get a higher interest rate on FDs with a tenure of 5 years 1 day to 10 years for amounts less than Rs 2 crore.

2) The scheme is available from May 20 to September 30, 2020.

3) The scheme will be applicable to fresh as well as renewal of FDs.

4) Customers can avail up to 90% of the principal amount of the FD as a loan.

5) One can also avail of credit cards against these FDs.

6) These FDs can be done either online through the internet and mobile banking or offline by visiting any ICICI Bank branch.

Earlier this month, State Bank of India, the country’s largest lender launched a special FD scheme offering higher interest rates to senior citizens to help them get a higher interest rate on their money in the times of falling interest rates in the economy. After SBI and ICICI Bank, other large banks are expected to launch such schemes.