Big relief for senior citizens. Three banks — State Bank of India (SBI), HDFC Bank and Bank of Baroda (BoB) — have extended the last date of the special fixed deposit (FD) scheme for senior citizens by another 3 months. That means, senior citizens can avail this facility till September 30, 2021.
When the pandemic struck last year crippling the economy and shrinking income streams of everybody, a few major banks began offering higher interest rates to senior citizens on fixed deposits of tenures 5 years and above.
All senior citizens are eligible to take the benefit of these special offers.
Senior citizens are, in the usual course of business, offered 50 basis points higher interest. This additional interest was over and above that rate.
“A special 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) will be paid to Senior Citizen’s on their retail TD for 5 Years and above tenor only. SBI Wecare deposit scheme stands extended till 30 September 2021,” SBI said in a statement.
Currently, SBI offers the general public 5.40% interest rate on five-year FDs. Under the special scheme the current interest rate is 6.20% for senior citizens. After June 30, it was supposed to go back to 5.90% for senior citizens.
However, if the customer makes premature withdrawal, the additional interest of 30 basis points over and above the 50 basis points offered to senior citizens would not be paid.
HDFC Bank has named its scheme for senior citizens Senior Citizen Care FD.
“An additional premium of 0.25% (over and above the existing premium of 0.50%) shall be given to senior citizens who wish to book the fixed deposit less than 5 crores for a tenure of 5 (five) years 1 Day to 10 Years, during special deposit offer commencing from May 18, 2020 to September 30, 2021,” country’s largest private sector lender announced on its website.
Usually, HDFC offers 5.50% interest rate to customers below 60 years. Under this scheme the interest rate for senior citizens is fixed at 6.25%, or 75 basis points higher than the normal rate.
The benefit for senior citizens is the highest in Bank of Baroda (BoB). It is 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 offer would be valid till September 30, 2021.
This rate is 50 basis points higher than the usual 50 basis points senior citizens get.
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