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Govt extends Senior citizen FD schemes

New Delhi: The pandemic has undoubtedly been disproportionately cruel to the elder citizens, leaving them vulnerable, both health-wise and money-wise. To safeguard the older population against the ravages of COVID-19, the banks have been offering additional returns on top of the special rates applicable for senior citizens.

The scheme, which has been subject to various extensions since its inception in May 2020 and ending in September this year, is applicable on FDs with a tenure of 5 years or more.

As per the 2011 census, there are nearly 100 million elderly persons in the country aged 60 and above, and if United Nations Population Fund and HelpAge India estimates are to be believed, this figure is expected to reach 173 million by 2026.

SBI’s “Wecare ” term deposit scheme for senior citizens, which offered an additional 30 bps interest rate on top of the 50 bps already being allotted to FDs of senior citizens exceeding 5 years or more, stands extended till September 30, 2021.

For the general public, which avails an interest rate of 5.4 percent on their FDs, senior citizens will avail additional benefits with a rate of 6.2 percent effective January 8, 2021.

The HDFC Bank senior citizen care FD offers 75 bps extra returns over the prevailing rates. Based on the current FD rates of the bank, which went into effect in May 2021, a senior citizen is eligible for around 6.25 percent under this scheme.

“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 One Day to 10 Years, during special deposit offer commencing from 18th May’20 to 30th Sep’21,” the bank website mentioned.

Under the ICICI bank Golden Years FD scheme, the beneficiary will get an extra 0.8 percent above the normal FD rates. With the current FD interest rate for a 5-10 year FD tenor being 5.5 percent, senior citizens will earn 6.3 percent under this scheme.

BoB (Bank of Baroda) is offering an additional percent for senior citizens over its normal FD rates, taking the cumulative rate applicable to around 6.25 percent. “1.00% for “above 5 years to up to 10 years” tenor and valid till 30.09.2021,” the bank’s website mentioned.


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