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SBI, HDFC, and ICICI Bank announce special FD schemes for senior citizens; check out interest rates, other key features

The SBI was the first bank to announce a special FD scheme for senior citizens called SBI 'WECARE'. Similarly, HDFC Bank as well as ICICI Bank Bank have also come up with --HDFC Senior Citizen Care FD, and ICICI Bank Golden Years, respectively

SBI, HDFC, and ICICI Bank announce special FD schemes for senior citizens; check out interest rates, other key features

India's largest bank, State Bank of India (SBI), and private lenders HDFC Bank and ICICI Bank have recently announced special fixed deposit schemes for senior citizens.

The SBI was the first bank to announce a special FD scheme for senior citizens called SBI 'WECARE' to safeguard the interests of senior citizens amid coronavirus crisis. Similarly, HDFC Bank as well as ICICI Bank Bank have also come up with --HDFC Senior Citizen Care FD, and ICICI Bank Golden Years, respectively.

Here are the  key features of three FDs for senior citizens:

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1. SBI 'WECARE'

According to the SBI, the scheme has been launched to provide a higher interest rate to senior citizens as they are usually dependent on interest income. The scheme is a domestic term deposit, therefore NRI senior citizens are exempted to invest in the SBI WECARE.

According to the  SBI website, the scheme will fetch 0.8 per cent above the interest rate applicable to the general public. Hence, if a senior citizen puts a fixed deposit under the special FD scheme, then the interest rate applicable to the FD will be 6.50 per cent. For the general public, the  SBI FD interest rate is 5.70 per cent at present.

In case of the premature withdrawal of the fixed deposit placed under the scheme, the FD investment will fetch only 0.50 per cent above the interest rate applicable to the general public, which is 6.20 per cent, according to the SBI website.

A fixed deposit investment under this special scheme can be made for a minimum of five years and a maximum of 10 years for less than Rs 2 crore deposit.

The SBIWECARE scheme for senior citizens is open till September 30, 2020.

A senior citizen can invest in the scheme by visiting the SBI bank branch. Existing customers of SBI can also place an FD via net banking and/or via the Yono app.

2. HDFC Bank 'Senior Citizen Care FD'

Private lender HDFC Bank is offering an additional premium of 0.25 per cent (over and above the existing premium of 0.50 per cent) for senior citizens. So, if a senior citizen deposits less than Rs 2 crore for the tenor between 5 years 1 day to 10 years, he/she will get an FD interest of 6.5 per cent.

In case of premature closure of the Fixed Deposit prior to 5 years, the interest will be less 1 per cent below the contracted date or the base rate. In case of premature closure of FD post 5 years, the interest rate will be 1.25 per cent below the contracted date or the base rate.

3. ICICI Bank 'Golden Years FD'

ICICI Bank has launched "Golden Years" FD  with an interest rate of 6.55 per cent a year for deposits of up to Rs 2 crore with a tenure of more than five to 10 years. The scheme will be applicable to fresh FDs as well as the renewal of FDs. Senior citizens can also avail loans against their FD for up to 90 per cent of principal and accrued interest. Additionally, they can apply for a credit card against their FD from the Bank.

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