Fixed deposits offer a variety of advantages, including safe investments, guaranteed rates of return, risk-free investments, tax advantages, and flexibility, to name a few. FDs are an excellent option for senior individuals who don’t want to risk their money in the market. Not only that, but the elderly are the largest gainers because banks provide higher interest rates on their FDs. Central banks have begun to raise their fixed deposit interest rates on various tenures this month to entice depositors.

In the face of dropping interest rates in 2020, many banks have introduced notable senior citizen fixed deposit (FD) programs to provide more excellent interest rates to senior citizens. Senior folks are the people most dependent on the interest gained from FDs for regular income, and hence these special FDs were created for them. These special FD schemes give a rate of interest up to 0.50 per cent greater than what banks pay to the general public on FDs.

However, these term deposits are only accessible for a limited time and will be phased out in the coming months. The expiration period of these special FD plans varies by bank. The unique senior citizen plans offered by the State Bank of India (SBI), HDFC Bank, and ICICI Bank will expire on the following dates.

Senior citizens interested in participating in this plan before the deadline can take advantage of the higher interest rates available.

SBI Wecare

SBI has established “SBI Wecare,” a unique deposit scheme for senior citizens. The particular program is being launched under SBI’s retail term deposit segment. It will pay Senior Citizens an additional premium of 30 basis points (over and above the standard 50 basis points) on their retail deposits for ‘5 Years and Above’ exclusively. The program will last through September 30, 2022.

SBI currently gives senior persons a 6.30 per cent interest rate on FDs under two crore with a 5 to 10 years tenure. On February 15, 2022, the bank increased FD rates on deposits under two crore by five basis points to 10 basis points.

The bank offers a 5.95 per cent rate to elderly adults with a tenure of 3 to less than five years, 5.70 per cent for 2 to less than three years, and 5.60 per cent for 1 to less than two years. The bank offers a 4.90 per cent rate on loans with terms of 180 days to less than one year, 4.40 per cent on loans with terms of 46 to 179 days, and 3.40 per cent on loans with terms of 7 to 45 days.

HDFC Bank Senior Citizen Care FD

HDFC Bank has extended the deadline for special senior citizen fixed deposits from March 31, 2022, to September 30, 2022. Senior persons who plan to open FDs under five crore and for tenures of more than five years, one day to 10 years, are eligible for an Additional Premium of 0.25 per cent (on top of the existing premium of 0.50 per cent). This special offer will apply to new Fixed Deposits and Renewals by Senior Citizens during the period above. Non-Resident Indians are not eligible for this deal.

The private banker, like ICICI Bank, gives a 6.35 per cent yield on FDs under two crore with a term of 5 years one day – 10 years. On FDs between two crores and five crores for the same tenures, however, the interest rate is 5.35 per cent.

A senior citizen can get a 3.5 per cent rate of return on FDs worth less than two crores for 30 days to 90 days, 4 per cent for 91 days to 6 months, and 4.90 per cent for six months to less than one year. Between one and two years, 5.50 per cent is paid. On a two year, one day – 3-year tenure, a 5.70 per cent rate is applied, and on a three year, day – 5-year tenure, a 5.95 per cent rate is applied.

Senior citizens earn 3.25 per cent on 30 days to 60 days, 3.5 per cent on 61 days to 90 days, 3.85 per cent on 91 days to 6 months, 4.10 per cent on six months one day to 9 months, and 4.20 per cent on nine months one day to less than one year for FDs between 2 crore and less than five crores. A senior citizen can get a 4.55 per cent rate for one year, 4.70 per cent for one year one day – two years, 5% for two years one day – three years, and 5.10 per cent for three years one day – five years.

HDFC Bank currently provides 3% on FDs of less than two crores and between 2-5 crores with terms ranging from 7 to 29 days.

ICICI Bank Golden Years FD

With effect from January 20, 2022, the ICICI Bank Golden Years FD Rates provide elderly citizens with an additional interest rate of 0.25 per cent per annum on FDs with a term of more than five years. According to the bank’s website, the scheme will be available until April 8, 2022.

“Resident Senior Citizen clients will receive an additional interest rate of 0.25 per cent for a short time over and above the existing additional rate of 0.50 per cent per annum,” according to ICICI Bank’s website. A higher rate will be offered during the scheme’s duration on both new and renewal deposits. From May 20, 2020, until April 8, 2022, the scheme applies to FDs. Fixed deposits have a value of fewer than two crores.

The applicable penal rate will be 1.25 per cent if the deposit opened in the preceding scheme is prematurely withdrawn/closed after, on, or after five years one day, according to its premature withdrawal provisions. The current premature withdrawal policy will apply if the deposit opened in the scheme is prematurely withdrawn/closed before five years one day.

ICICI Bank currently provides elderly adults with a 6.35 per cent interest rate on a five year one, day to 10-year term, 5.95 per cent on a three year day to a 5-year term, and 5.70 per cent on a two year day to 3-year term. The lender offers a 5.5 per cent rate on loans with a term of one year to less than two years, 4.9 per cent on loans with a term of 185 days to less than one year, 4 per cent on loans with a term of 91 days to 184 days, 3.5 per cent on loans with a term of 30 days to 90 days, and 3 per cent on loans with a term of 7 days to 29 days.