HDFC Bank, IDBI Bank to wind up these special fixed deposit (FD) schemes from October 1

All major lenders in India, the public sector and private sector, had floated impressive fixed deposit (FD) schemes for senior citizens during the Covid-19 epidemic in an attempt to make them earn more interest on their invested money in addition to the existing interest rates. Lenders like HDFC Bank, ICICI Bank, IDBI Bank, and SBI (State Bank of India) had introduced special fixed deposit schemes. However, now, some lenders are closing some of their fixed deposit schemes for senior citizens.  

While the SBI has declared that it would extend the validity period of its WECARE' Senior Citizens Term Deposit scheme till March 31 next year, HDFC Bank and IDBI Bank have said that September 30 this year will be the last day for their special fixed deposit schemes for senior citizens. ICICI Bank, which had launched ICICI Bank Golden Years FD, has said its scheme is valid till October 7 this year. Let’s take a look at these FD schemes.

HDFC Bank Senior Citizen Care FD

HDFC Bank floated the “Senior Citizen Care FD" on May 18, 2020, which offered an increased rate of interest of 6.50 per cent, instead of 5.75 per cent for schemes with a maturity term of 5 to 10 years. The revised rate was 75 basis points higher than the standard rate. As per its website, the bank said “an additional Premium of 0.25 per cent (over and above the existing premium of 0.50 per cent) will be offered to senior citizens for schemes for the tenure of 5 years 1 Day to 10 Years. The offer was not applicable to Non-Resident Indians.

Also read: Axis Bank Fixed Deposit rates vs SBI Fixed Deposit rates: Check out latest rates, withdrawal clauses

IDBI Naman Senior Citizen Deposit

IDBI Bank floated the special IDBI Naman Senior Citizen Deposit programme for senior citizens on April 20, 2022. The special fixed deposit plan was offered for tenures of more than one year to 10 years, and its validity term is from 20 April 2022 to 30 September 2022. Under the plan, senior citizens got an additional interest rate of 0.25 per cent over and above the existing additional rate of 0.50 per cent a year on this special fixed deposit plan. The additional rate was applicable on fresh offers and schemes renewed during the valid duration of the programme.

ICICI Bank Golden Years FD

ICICI Bank launched its ICICI Bank Golden Years FD scheme in May 2022. It is valid till October 7. The increased interest rates are applicable only for schemes with a maturity tenure of 5 years 1 day up to 10 years. Senior citizens are being offered an additional interest rate on a fixed deposit (FD) of 0.20 per cent in addition to the current additional rate of 0.50 per cent.

Also read: Kotak Mahindra, South Indian Bank, Bandhan Bank increase FD interest rates. Check here for scheme details

SBI We Care FD Scheme

SBI's We Care FD scheme was launched in May 2020. As per its website, the 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 offered to senior citizens on their retail TD for '5 Years and above' tenor only. SBI already offers an additional 0.5 per cent interest to senior citizens above the age of 60. Under the SBI Wecare deposit scheme, the total interest payable to senior citizens goes up to 0.8 per cent. The scheme was supposed to end on September 30 this year, but the lender recently extended the FD scheme till March next year.