HDFC Bank extends special FD for senior citizens till March 2023 — how it compares with schemes of SBI, ICICI Bank

Private sector lender HDFC Bank has extended its special fixed deposit (FD) - Senior Citizen Care FD — till March 31, 2023. As a result, senior citizens will be able to avail an additional premium of 0.25 percent who wish to book FD less than Rs 5 crore for a tenure  of 5 (five) years one day to 10 years. This is over and above the existing additional rate of 0.50 percent per annum on original FD rates.

This special offer is applicable to new fixed deposit booked as well as for the renewals by senior citizens.

Senior Citizen Care FD has been available for senior citizens since May 18, 2020, with a higher interest rate benefit. Due to the COVID-19 pandemic and the low-interest rate regime, the scheme has been repeatedly extended.

This offer is not applicable to non-resident Indian, the bank said.

“In case of premature closure of fixed deposit booked in the above offer (including sweep in / partial closure) on or before 5 years, the interest rate will be 1.00 percent below the contracted rate or the base rate applicable for the period the deposit has remained with the bank, whichever is lower. Post 5 years, the interest rate will be 1.25 percent below the contracted rate or the base rate applicable for the period the deposit has remained with the bank, whichever is lower,” HDFC Bank said.

Similarly, State Bank of India (SBI) has extended its special fixed deposit scheme - SBI Wecare deposit scheme for senior citizens till March next year. Under the SBI Wecare deposit scheme, senior citizens are offered an additional interest of 30 basis points or 0.3 percent.

SBI already offers additional 0.5 percent interest to senior citizens above the age of 60 and under the SBI Wecare deposit scheme the total interest payable to senior citizens hence goes up to 0.8 per cent.

It’s important to note that ICICI Bank is also offering a similar offer.

Known as Golden Years fixed deposit (FD), the bank is offering an additional interest rate of 0.10 percent per annum. This is over and above the existing additional rate of 0.50 percent per annum on original FD rates. ICICI Bank’s Golden Years fixed deposit scheme is available for the tenure of more than five years and up to 10 years.

However, this scheme is available only till October 7, 2022.

Earlier, the additional interest was 0.20 percent per annum for ICICI Bank Golden Years FD which was later reduced.