Several state-owned as well as private banks, including State Bank of India, HDFC Bank, ICICI Bank, Bank of Baroda, are offering senior citizens special fixed deposit (FD) schemes, providing higher interest rates on term deposits. This special FD scheme was launched in May 2020 to cushion senior citizens from falling interest rates amid the coronavirus pandemic. This special FD scheme for senior citizens is available till March 31.
However, recently a lot of lenders have cut bank FD rates which have led to people looking for other investment instruments. In order to lure customers back, top lenders like State Bank of India (SBI), HDFC Bank, ICICI Bank and Bank of Baroda (BoB) are offering extra interest rates over the existing rates on fixed deposits (FD) applicable for senior citizens.
SBI special FD scheme for senior citizens
The SBI scheme for senior citizens will fetch 80 basis points (bps) interest rate above the rate applicable to the general public. Currently, SBI gives 5.4 percent interest on a five-year fixed deposit to the general public. Under the special FD scheme, senior citizens can get an interest rate of 6.20 percent.
HDFC Bank
HDFC Bank offers 75 bps higher interest rates on these deposits. The interest rate applicable for senior citizens will be 6.25 percent.
ICICI Bank
ICICI Bank offers 80 bps higher interest rates on fixed deposits. Senior citizens get an interest rate of 6.30 percent per annum under the ICICI Bank Golden Years FD scheme.
Bank of Baroda Special FD Scheme For Senior Citizens
Bank of Baroda (BoB) is providing senior citizens 100 bps more on these deposits. If a senior citizen deposits in this scheme, the interest rate available to the FD will be 6.25 percent under the special FD scheme which comes with a tenure of above 5 years to up to 10 years.
