SBI, HDFC, and ICICI Bank recently launched special fixed deposit schemes for senior citizens. It’s no news anymore that the interest rates are falling rapidly. To safeguard the interests of senior citizens in such a falling rate regime, these banks have announced to offer extra FD interest rates to its customers falling in the senior citizen category.
The interest income plays a vital role for senior citizens. This move will help them hold their finances better at the time of uncertainties.
SBI was the first bank to announce such a scheme (SBI We Care) on the 7th of May, 2020 and made it available for customers from 12th May 2020. Following the lead, HDFC Bank announced a similar term deposit scheme (HDFC Senior Citizen Care FD) available from 18th May 2020. This was followed by ICIC Bank (ICICI Bank Golden Years) effective from 20th May 2020.
Special Senior Citizen FD Schemes – Salient Features
Important: All three banks have extended the schemes till 31st March 2021.
Bank of Baroda was also offering special FD rates to senior citizen customers till 31st December 2020.
Some of the common features of these schemes by SBI, HDFC, and ICICI Bank are:
- Tenure of 5 years or more
- Up to 30 bps extra offered over the existing senior citizen interest rates for fixed deposit
- New interest rates applicable to fresh term deposits as well as existing deposits
- Applicable till the 31st of March, 2021
- There is zero lock-in period unlike the 5 years of tax-saving FD schemes by the respective banks
- Also, the deposit amount is not limited to Rs. 1.5 lakh like that of a tax saving scheme
Let’s do a thorough analysis of the three Senior Citizen Schemes launched by SBI, HDFC, and ICICI Bank for a better understanding of the features and benefits offered.
|Particulars/Banks||State Bank of India||ICICI Bank||HDFC Bank|
|Name of the scheme||SBI WeCare||ICICI Bank Golden Years||HDFC Senior Citizen Care|
|Eligibility||Residents of 60 years or more|
(standard rates + 0.80%)
(standard rates +0.80%)
(standard rates+ 0.75%)
|TDS||Deducted @ 10%|
|Tenure||5 years and above||5 years 1 day – 10 years|
|Minimum Deposit Amount||Rs. 1,000||Rs. 10,000||Rs. 5,000|
|Maximum Deposit Amount||Less than Rs. 2 crore||Less than Rs. 5 crore|
|Loan/Overdraft against FD||Allowed|
|Applicable from||12th May 2020||20th May 2020||18th May 2020|
|Valid till||All three schemes – 31st March 2021|
*Applicable only if FD is booked for more than 5 years 1 day. Therefore, if you have booked the FD for, say 6 years, and withdraw before 6 years but after 5 years 1 day, then these charges may apply. However, if you have booked for an exact 5 years 1 day, then no penalty will apply.
Click on the links below to know the updated SBI, HDFC and ICICI Bank’s FD interest rates.
|SBI Fixed Deposits||ICICI Bank Fixed Deposits||HDFC Bank Fixed Deposits|
Other alternatives for Senior Citizens
Apart from these Special Senior Citizen FD schemes, eligible investors can check out the Senior Citizen Saving Scheme. This scheme is backed by the Government of India and is thus 100% secure option. It is available in post offices across India and the select scheduled banks. Check the table below for detailed information about this scheme:
|Tenure||5 years (minimum)|
|Minimum Deposit Amount||Rs. 1,000|
|Premature Withdrawal|| Allowed the lock-in period of 1 year|
|Available at||Available at Post Offices|
Read more: Senior Citizen Savings Scheme