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 offering extra FD interest rates to their 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 uncertainty.
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 | ||
| Interest Rate | 6.20% (standard rates + 0.80%) | 6.30% (standard rates +0.80%) | 6.25% (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 | ||
| Premature Withdrawal |
|
|
|
| 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 a 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:
Particulars | Details |
| Tenure | 5 years (minimum) |
| Minimum Deposit Amount | Rs. 1,000 |
| Interest Rate | 7.4% |
| Interest Payment | Quarterly |
| Premature Withdrawal | Allowed the lock-in period of 1 year Penalty applicable |
| Eligibility |
|
| Available at | Available at Post Offices |
Read more: Senior Citizen Savings Scheme
5 Comments. Leave new
Monika
Thanks for your report on FD.
How about sundaram housing finance Ltd?
I am in usa.
Please reply to me
Thanks
N Sivsubramanian
Hi Sivsubramaniam,
Sundaram Housing Finance Ltd. gives NRIs the option for FD at a non-repatriable basis. Senior citizen interest rates, currently, range from 7% to 7.25% (cumulative deposits). Also, if you have an NRO account in India, then only you can open a fixed deposit in Sundaram Housing Finance Ltd. Funds transferred from an NRE or FCNR account will not be accepted for making deposits. The interest, as well as the principal amount, will be credited to your NRO account only.
You can try small finance banks like Ujjivan and Equitas Small Finance Banks if you want to open an NRE FD at higher interest rates than what leading banks like SBI and HDFC are offering currently.
Very informative . Rate of interest of sbi wecare deposite. Pl.reply.
Hi Mrudula,
SBI WeCare is offering 6.20% interest on the tenure of 5 years or above.
You may check the table where rates are stated for all the three deposit schemes by SBI, ICICI Bank and HDFC Bank.
Thanks for this info.