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Additional interest rate is applicable only on deposits of 5 years to 10 years and on new fixed deposits or renewed deposits.

The last date for registering for the special senior citizen fixed deposit(FD) scheme has been extended by the banks to June 30, 2021 from March 31, 2021. This is indeed good news for those who fall in the category but missed the deadline.

The special senior citizen FD scheme was introduced by few banks last year in May as an effect of the ongoing covid-19 pandemic. The scheme was initiated for a term of 5 years to provide the benefit of additional interest to the people who are above the age of 60, whose incomes mainly rely on FD returns.

All the investments were entitled to an additional interest rate of 0.8% or more under this scheme, instead of the usual 5.5% interest that banks generally offer. The benefit of this additional rate of interest will be provided to all fresh deposits as well as renewal during the scheme period.

Currently, the State Bank of India (SBI), Bank of Baroda,  HDFC Bank, and ICICI Bank are offering introduced special fixed deposit schemes for senior citizens.

Here’s how much additional interest you’ll get under the special FD schemes of different banks:  

SBI has created a ‘Wecare Deposit’ plan for Senior Citizens in Retail, TD segment wherein people above 60 get an additional 0.3% interest (above the existing addition of 0.5 %) on their fixed deposit investments for five years or more. Investors will get a 6.2% interest rate for 5 yrs and above at SBI and for the general public, it is 5.4%. The scheme will be applicable for investment under Rs 2 crore.

Bank of Banda’s special FD scheme for senior citizens provides an additional 1% interest rate on the fixed deposit schemes that come with a tenure of 5-10 years. With this addition, the senior citizen can get the benefit of 6.25%.

HDFC Bank is offering an additional 0.25% interest rate to its Senior Citizen over and above existing Care FD on deposits above 5 years tenure and up to 10 years.  With this new benefit, senior citizens will get a 6.25% interest.

Meanwhile, ICICI Bank is offering the ‘Golden Years’ scheme exclusively to senior citizens. The bank is providing an additional 0.3% interest annually on fixed deposits with a tenure of 5-10 years. Under the ICICI Bank Golden Years FD scheme, senior citizens will get the benefit at a 6.30% interest rate.