Senior citizens special FD scheme of SBI, HDFC Bank, BoB extended:

Banks fixed deposit as an instrument offers several benefits including an assured return as returns don’t fluctuate like many asset classes, income tax benefits, and more. A senior citizen still stands a chance to open a Senior citizens special FD scheme for the tenure of five years and more. Senior citizens special FD scheme offered by the State Bank of India (SBI), HDFC Bank, and Bank of Baroda (BoB) have been extended till 30 September 2021.

“A special “ SBI Wecare” Deposit for Senior Citizens introduced in the Retail TD segment wherein an additional premium of 30 bps (over & above the existing 50 bps as detailed in the above table) will be paid to Senior Citizen’s on their retail TD for ‘5 Years and above’ tenor only. “SBI Wecare” deposit scheme stands extended till 30th September 2021,” SBI said.

Bank fixed deposits (FDs) and the Senior Citizen Savings Scheme (SCSS) is the ideal investment opportunities, keeping the long-term stability aspect and added additional benefits into consideration.

However, recently a lot of lenders have cut bank FD rates which has led to people looking for other investment instruments. In order to lure customers back, top lenders like State Bank of India (SBI), HDFC Bank, and Bank of Baroda (BoB) are offering extra interest rates over the existing rates on fixed deposits (FD) applicable for senior citizens.

Here is what the banks are offering to senior citizens

SBI special FD scheme for senior citizens

For general customers, the bank is offering a 5.4 percent interest rate on five years FD. If a senior citizen opens a fixed deposit under the special FD scheme, then the interest rate applicable to the FD will be 6.20 per cent. These rates are applicable since 8 January 2021.

HDFC Bank Special FD Scheme For Senior Citizens

“An Additional Premium of 0.25% (over and above the existing premium of 0.50%) shall be given to Senior Citizens who wish to book the Fixed Deposit less than 5 crores for a tenure of 5 (five) years One Day to 10 Years, during special deposit offer commencing from 18th May’20 to 30th Sep’21,” the bank mentioned on its website.

HDFC Bank provides a higher interest rate of 75 bps on these special deposits. This implies that under HDFC Bank Senior Citizen Care FD senior citizens will get good returns of 6.25%.

Bank of Baroda special FD scheme for senior citizens

Bank of Baroda offers 100 bps higher on these deposits to senior citizens. If a senior citizen puts a fixed deposit under the special FD scheme (above 5 years to up to 10 years), then the interest rate applicable to the FD will be 6.25%. These rates are effective from 16 November. “1.00% for “Above 5 years to up to 10 years” tenor and valid till 30.09.2021,” BoB stated on its site.