Here’s how the interest rates of State Bank of India are (State Bank Of India, HDFC bank and compare. Which of these three leading banks is offering the best interest rate for special senior citizen deposits.
what are these Special Senior Citizen FDs,
These FD schemes were introduced by banks to provide higher interest rates to senior citizens amid falling interest rate scenario as these are the people who are most dependent on the interest earned from FDs for regular income.
SBI WeCare Deposit for Senior Citizens
Special “SBI WeCare” Deposit for Senior Citizens is a Fixed Deposit Scheme wherein Senior Citizens will be paid an additional premium of 30 bps over and above the existing 50 bps for a period of ‘5 years and above’ on their retail TD . ‘ Only.
According to the SBI website, this “SBI WeCare” deposit scheme has been extended till March 31, 2022.
HDFC Senior Citizen Care FD
According to the HDFC Bank website, “An additional premium of 0.25% (over the existing premium of 0.50%) will be paid to senior citizens who wish to book Fixed deposit Less than 5 crores for a tenure of 5 (five) years one day to 10 years during the special deposit offer commencing from 18th May’20 to 31st March’22. This special offer will be applicable for renewal as well as fresh fixed deposits booked by senior citizens during the above period. This offer is not applicable to NRIs.”
ICICI Bank Golden Years FD Rates
As per its website, the details of ICICI Bank Special Senior Citizen FD are as follows:
- Resident Senior Citizen customers will get an additional interest rate of 0.20% for a limited time in addition to the existing additional rate of 0.50% per annum.
- The additional rate will be available on newly opened deposits as well as deposits renewed during the plan period.
- Eligible FD Tenure: 5 Years 1 Day to 10 Years
- Applicable Period: May 20, 2020 to April 08, 2022
- Applicable on single FD of amount
- Premature Withdrawal: If the deposit opened in the above scheme is prematurely withdrawn/closed on or after 5 years 1 day, the applicable penalty rate will be 1.20%. If the deposit opened in the above scheme is prematurely withdrawn/closed before 5 years 1 day, then the prevailing premature withdrawal policy will be applicable.
- All other features of Fixed Deposit as well as the terms and conditions shall remain unchanged and shall be applicable for the above scheme as well.
Should you invest?
If a senior citizen is looking for the safety of his principal money along with reasonable returns, then there are other options that are offering higher rate of interest as compared to these particular FDs.
For example, the Senior Citizen Savings Scheme (SCSS) is currently offering 7.4 per cent per annum. The interest rate difference between SBI FD and SCSS is 1.20 percent. SCSS also allows premature withdrawal by paying certain penalties. The tenure of the SCSS scheme is also five years.
Other post office schemes like five year post office time deposit is currently offering 6.7 percent and post office monthly income scheme account is offering 6.6 percent per annum.
A senior citizen should evaluate all the features of the scheme and not just the interest rate before making any investment.