Special FD rates for senior citizens to end on June 30

The window to special fixed deposit rates for senior citizens will close in four PSU and private sector banks on June 30

Special FD rates for senior citizens to end on June 30
Representative Image | Pixabay

When the pandemic struck last year crippling the economy, a few major banks began offering higher interest rates to senior citizens on fixed deposits of 5 years and above.

Senior citizens are, in the usual course of business, offered higher interest rates of 50 basis points. This additional interest was over and above that rate.

These special FD rates are going to end on June 30, 2021. So, if you have some money that you want to invest in a safe and secure instrument, you can invest in these FDs before the month ends.

The banks that are offering these rates are State Bank of India (SBI), ICICI, HDFC and Bank of Baroda (BoB). These special rates were launched in May 2020 during the nationwide lockdown.

More basis points

The relation of a basis point to a percentage point is similar to the relation between a rupee and a paisa – 100 basis points make a percentage point.

All senior citizens are eligible to take the benefit of these special offers. Bank of Baroda is offering 100 basis points (or one percentage point) extra over the normal FD rates under this scheme.

Others are offering 75-80 basis points extra interest rate for FDs of 5 to 10-year terms.

In 2020, under the ‘Atmanirbhar Bharat’ project during the first wave, the Centre asked the banks to offer special rates to senior citizens, an especially vulnerable group.

The offer was going to end on March 31 but was extended till end-June just before the second wave hit the country.

Bank of Baroda

Bank of Baroda is providing senior citizens the maximum benefit by offering a full 1 percentage point higher than normal rates. While a customer below 60 years will be paid 5.25% on a FD with a tenure between 5 to 10 years, those above 60 would get 6.25%.

This rate is 50 basis points higher than the usual 50 basis points that senior citizens get.

SBI WeCare

SBI is offering 80 basis points or 0.8 percentage points higher than the usual interest rate on these FDs that were named as WeCare.

Currently, SBI offers the general public 5.40% interest rate on five-year FD. Under the special scheme the current interest rate is 6.20% for senior citizens. After June 30, it would go back to 5.90% for senior citizens.

However, if the customer makes a premature withdrawal, the additional interest of 30 basis points over and above the 50 basis points offered to senior citizens as a matter of routine will not be paid.


HDFC Bank has named its scheme for senior citizens as Senior Citizen Care FD. Investors get returns at a 6.25% interest rate on their investments on 5-year to 10-year FDs.

Usually, HDFC offers 5.5% interest rate to customers below 60 years. Under this scheme the interest rate for senior citizen is fixed at 6.25%, or 75 basis points higher than the normal rate.


ICICI Bank is offering a higher interest rate of 80 basis points on such deposits. The ICICI Bank Golden Years FD scheme is featuring an interest rate of 6.30% per annum for senior citizens. For normal customers it is fixed at 5.5%.

The tenure for this special FDs is between 5 years and 10 years.

Most banks are offering these services online and you don’t have to step out of your home to take the benefit.

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