Senior Citizen Special Fixed Deposit Scheme; invest before 31 March to make the most of it

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The covid-19 pandemic exacerbated the economic woes of the country’s economy as well as ate into savings of many. Even the most well-placed financial plans went for a toss amid lay-offs and medical crisis. Interest income also dived with falling interest rates. However, in a bid to extend financial relief to senior citizens, banks introduced special scheme to boost their interest income:

Offer valid only till March 31

Special FD scheme of banks yields interest. Bank Fixed Deposit and Senior Citizen Savings Scheme (SCSS) is one such investment. The Bank Special Fixed Deposit scheme was launched in May 2020. However, its deadline was kept on 31 March 2021. So, to benefit from this scheme, you’ll have to invest before the end of the current fiscal.

SBI Special FD Scheme The scheme offers 80 bps higher interest rate to senior citizens on term deposits. Currently, SBI is paying 5.4 percent interest on 5-year FD to the general public, while for senior citizens under the special FD scheme, 6.20 percent interest is being offered.

HDFC Bank Special FD Scheme In HDFC Bank’s Special FD Scheme, senior citizens get 75bps more interest. The lender is offering up to 6.25 percent interest on term deposits to senior citizens.

ICICI Bank’s Special FD Scheme Senior citizens can earn up to 6.3% interest on fixed deposits, which is 80 bps higher than normal deposits.

Bank of Baroda Special FD Scheme The lender’s special scheme offers 100 bps higher interest rate to senior citizens. For a tenure between 5 years and 10 years, the bank is offering 6.25% interest to senior citizens.