According to the bank’s website, “Super Senior Citizens above the age of 80 years will get an additional interest rate of 80 bps over the applicable card rate across all maturity buckets.”
Banks usually offer an additional 0.50% to senior citizens (60 years and above) over and above what is offered to the general public. However, no other bank is currently offering higher interest rate for super senior citizens on all FD tenors.
Current FD Interest Rates for Very Senior Citizens
The interest rate offered on FDs to super senior citizens is effective from September 13, 2022. The bank is offering fixed deposits ranging from 7 days to a maximum of 10 years.
PNB Super Senior Citizen FD Interest Rate
Source: PNB Website
Special FD Schemes for Senior Citizens
During the pandemic, many banks introduced special fixed deposits for senior citizens, where higher interest rates were offered on certain tenures (5 years and above). Some of these banks are still continuing with these schemes. Under such schemes, banks usually offer 0.30% more than the interest rate offered to senior citizens (60 years and above), but only if they have booked FDs for a tenure of 5 years or more . It is to be noted that PNB is now offering an additional 80 bps on all FD tenures, but only to super senior citizens.
Also, an additional interest rate of 0.30% was not paid if this particular FD was withdrawn prematurely i.e. before maturity.
Examples of such schemes are SBI WeCare Senior Citizen FD and HDFC Bank Special FD for Senior Citizens etc. SBI WeCare FD offers an additional interest of 80 bps (an additional 30 bps + 50 bps normally offered to senior citizens) on the card rate for the public. ,
Similarly, HDFC Bank offers an additional premium of 0.25% (over 0.50% of the existing premium) to senior citizens who wish to book FDs with tenures ranging from 5 years 1 day to 10 years.
PNB Premature FD Withdrawal
Note that the facility of premature withdrawal is available at the FD interest rate mentioned in the above table. If a super senior citizen wants to withdraw money before the FD maturity date, then she can withdraw money by visiting the bank branch. Penal interest will be levied if a very senior citizen prematurely withdraws the fixed deposit.
According to PNB’s website, “A penal interest of 1% will be levied at the time of premature cancellation/partial withdrawal of domestic fixed deposit for all tenors and the rate of interest payable will be the contractual rate minus 1% or the rate under the scheme on contract. Applicable date for the period for which the deposit is actually minus 1%, whichever is less.