Finance News : 4 Best Term Deposit Schemes for Senior Citizens for Investment

SBI ‘WECARE’ Senior Citizens Term Deposit Scheme

Senior citizens will get additional interest on their term deposits if they invest for a period of 5 to 10 years under this State Bank of India (SBI) deposit scheme. They will be given an additional rate of 30 basis points on top of the current premium of 50 basis points on top of their public card rate, for a total of 80 base points on the public card rate. Interest will be paid on a monthly or quarterly basis.

This scheme is applicable for renewal of mature deposits as well as new deposits and TDS will be levied as per Income Tax Act. SBI now offers an interest rate of 5.4 per cent on five-year FDs for the general public. Senior citizens will get 6.20 per cent interest rate on deposits of less than Rs 2 crore under the special FD scheme. Interest rates on SBI’s current fixed deposits for senior citizens can be found here.

Tenor Interest Rates In %
7 days to 45 days 3.4
46 days to 179 days 4.4
180 days to 210 days 4.9
211 days to lower than 1 12 months 4.9
1 12 months to lower than 2 12 months 5.5
2 years to lower than 3 years 5.6
3 years to lower than 5 years 5.8
5 years and as much as 10 years 6.2
Source: SBI, W.e.f. 08.01.2021

HDFC Bank Senior Citizen Care FD

Senior citizens who deposit less than Rs 2 crore over a period of 1 year to 10 years on May 5 (5) will get an additional premium of 0.25 per cent during the special deposit offer starting May 18 to September 20 and above the current premium of 0.50 per cent. During the aforesaid period, this special agreement will be available for new permanent deposits as well as renewals.

Non-Resident Indians are not eligible for this special fixed deposit scheme of HDFC Bank. If a term deposit made under the scheme closes prematurely with a sweep-in / partial closure of 5 years or earlier, the interest rate will be 1.00 per cent lower than the contract rate or the base rate applicable for the term of the deposit with the bank, whichever is less.

The interest rate will be 1.25 per cent below the contractual rate or with the deposit rate applicable to the bank for the period applicable, whichever is less, if the term deposit under the scheme is terminated prematurely, including sweep-in / partial closure by a senior citizen after 5 years. The interest rates on HDFC Bank’s most recent senior citizens’ fixed deposits are listed below.

Tenor Bucket Senior Citizen Rates (every year)
7 – 14 days 3.00%
15 – 29 days 3.00%
30 – 45 days 3.50%
46 – 60 days 3.50%
61 – 90 days 3.50%
91 days – 6 months 4.00%
6 months 1 day – 9 months 4.90%
9 months 1 day to lower than 1 Year 4.90%
1 Year 5.40%
1 12 months 1 day – 2 years 5.40%
2 years 1 day – 3 years 5.65%
3 12 months 1 day- 5 years 5.80%
5 years 1 day – 10 years 6.25%
Source: HDFC Bank, W.e.f. twenty first May 2021

icici bank
ICICI Bank Golden Years Fixed Deposit

Under this special fixed deposit scheme, senior citizens will get an additional interest rate of 0.30 per cent per annum for their fixed deposit for 5 years 1 day to 10 years, in addition to the conventional additional rate of 0.50 per cent per annum. During the existence of the scheme, additional rates will be paid on both new and renewed deposits.

ICICI Bank’s Special Fixed Deposit Scheme will be available till October, October 2021. Under this scheme, less than Tk 2 crore deposit will be available. The applicable penalty rate will be 1.30 per cent if the money deposited under the scheme is withdrawn / stopped prematurely, or after 5 years 1 day.

If the open deposit under the special deposit scheme is withdrawn or closed before 5 years and 1 day, the present premature withdrawal rule will apply. The interest rates on fixed deposits of senior citizens of ICICI Bank are mentioned below.

Maturity Period Senior Citizen Rates (every year)
7 days to 14 days 3.00%
15 days to 29 days 3.00%
30 days to 45 days 3.50%
46 days to 60 days 3.50%
61 days to 90 days 3.50%
91 days to 120 days 4.00%
121 days to 150 days 4.00%
151 days to 184 days 4.00%
185 days to 210 days 4.90%
211 days to 270 days 4.90%
271 days to 289 days 4.90%
290 days to lower than 1 12 months 4.90%
1 12 months to 389 days 5.40%
390 days to 5.40%
18 months to 2 years 5.50%
2 years 1 day to three years 5.65%
3 years 1 day to five years 5.85%
5 years 1 day to 10 years 6.30%
5 Years (80C FD) – Max to Rs 1.50 lac 5.85%
Source: ICICI Bank, W.e.f. Oct 21, 2020

Bank of Baroda Special Fixed Deposit Scheme

Bank of Baroda (BoB) offers additional rates to senior citizens for deposits of less than Rs 2 crore. However, under the special fixed deposit scheme, older persons will receive an additional rate of 1.00 per cent for a period of “more than 5 years to 10 years”, which will remain valid until September 30, 2021.

Tenors Senior Citizen Rates (every year)
7 days to 14 days 3.30%
15 days to 45 days 3.30%
46 days to 90 days 4.20%
91 days to 180 days 4.20%
181 days to 270 days 4.80%
271 days & above and fewer than 1 12 months 4.90%
1 12 months 5.40%
Above 1 12 months to 400 days 5.50%
Above 400 days and upto 2 Years 5.50%
Above 2 Years and upto 3 Years 5.60%
Above 3 Years and upto 5 Years 5.75%
Above 5 Years and upto 10 Years 6.25%
Source: BoB, W.e.f. 16.11.2020

 

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