With interest rates going up, Fixed Deposits are back in the spotlight. HDFC Bank, State Bank of India (SBI) and IDBI are offering special fixed deposit schemes for senior citizens. Here’s a look at what these banks are offering as part of the special fixed deposit scheme and which one is offering the highest interest rate.
HDFC Bank Special Fixed Deposit for Senior Citizens
The HDFC Bank recently extended its special fixed deposit scheme for senior citizens until March 2023. The bank launched a Senior Citizen Care FD in May 2020m offering a higher interest rate benefit to senior citizens.
HDFC bank Senior Citizen Care FD offers an additional interest of 0.25% over and above the existing premium of 0.50%. The interest rate is available only for deposits for 5 years One Day to 10 years. For general applicants, the interest rate on deposits of 5 years 1 day – 10 years is 5.75%. However, senior citizens can book such deposits for 6.50%. It is applicable to new Fixed Deposit accounts as well as renewals.
IDBI Bank Special Fixed Deposit for Senior Citizens
IDBI Bank is offering Naman Senior Citizen Deposit. The scheme will be available until October 31, 2022. Under this initiative, IDBI Bank offers an additional 0.75% interest over card rates to senior citizens. Unlike HDFC Bank, customers can book a Naman Senior Citizens Deposit for tenors of more than one year and up to 10 years. Senior citizens can get up to 6.5% interest with this IDBI Bank’s FD plan.
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IDBI Bank is also offering an Amrit Mahotsav FD scheme for deposits of a special 500-day tenure. Under this plan, senior citizens can get 6.6% interest on their callable deposits and 6.7% interest on non-callable deposits. This scheme will also be available only till October 31, 2022.
SBI Special Fixed Deposit
SBI has also extended its ‘WECARE’ Senior Citizens Term Deposit scheme until march next year. The scheme provides an additional interest of 0.30% (over and above the additional 0.50% interest) for deposits of 5 years and above. With SBI, senior citizens can get up to 6.45% interest on deposits of 5 years and up to 10 years (as per revised rates w.e.f 13-08-2022). However, on booking the FD under the WECARE plan, senior citizens can get 6.75% (6.45+0.30) interest.
After comparing the special deposit schemes of HDFC Bank, IDBI Bank and SBI, it is clear that senior citizens can earn a higher interest of 6.75% with SBI by booking the WECARE Term Deposit.
