The State Bank of India (SBI) and HDFC Bank launched a special fixed deposit (FD) scheme for senior citizens.
Key highlights of HDFC Bank Senior Citizen Care FD:
The Senior Citizens Care FD scheme is applicable to new FD deposits booked as well as for the renewals, by senior citizens during the above period. This offer is not applicable to Non-Resident Indian.
HDFC Bank is offering an additional 75 basis points (bps) over normal deposits for more than 5-year tenors with investments up to Rs 5 crore. Those who want to invest in the scheme can do so between May 18, 2020 and September 30, 2020.
So, at present, for deposits less than Rs 2 crore with a tenor of 5 years 1 day to 10 years, the interest rate for non-seniors is 5.75 per cent and for senior citizens it is 6.5 per cent a year.
SBI's senior citizen FD
SBI's senior citizens FD, SBI WECARE Senior Citizens Term Deposit scheme is available for investment from 12 May 2020. According to the bank, the scheme has been launched to provide a higher interest rate to senior citizens in the current falling interest rate scenario as this category of investors are usually dependent on interest income. The scheme will fetch 0.8 per cent above the interest rate applicable to the general public.