PremiumAlthough fixed deposits offer additional rate benefits to senior citizens, we are talking about term deposits that offer additional rate benefits over and above the existing 0.50 per cent benefit for senior citizens.
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At a time when interest rates are increasing, debt investments, particularly fixed deposits, have regained favour among debt investors, particularly senior citizens, who see fixed deposits as a safe haven at a time when equity investments are risky. Fixed deposits would be a low-risk investment strategy for them now that inflation has skyrocketed the highest since May 2014 and interest rates are rising in the long term. Although fixed deposits offer additional rate benefits to senior citizens, we are talking about term deposits that offer additional rate benefits over and above the existing 0.50 per cent benefit for senior citizens. Let’s have a look.
State Bank of India (SBI) has mentioned on its website that “A special SBI Wecare Deposit for Senior Citizens introduced in the Retail TD segment wherein an additional premium of 30 bps (over & above the existing 50 bps as detailed in the above table) will be paid to Senior Citizen’s on their retail TD for '5 Years and above' tenor only. SBI Wecare deposit scheme stands extended upto 30th September, 2022." The bank gives senior citizens an interest rate of 6.30 percent on this special deposit, which is an increase of 80 basis points above the standard rate. SBI is offering the following interest rates to older folks as of 15.02.2022.
7 days to 45 days- 3.40
46 days to 179 days- 4.40
180 days to 210 days- 4.90
211 days to less than 1 year- 4.90
1 year to less than 2 year- 5.60
2 years to less than 3 years- 5.70
3 years to less than 5 years- 5.95
5 years and up to 10 years- 6.30
ICICI Bank offers resident senior citizens an additional interest rate of 0.25 per cent over and above the existing additional rate of 0.50 per cent per annum on fixed deposits of less than ₹2 Cr maturing in 5 years 1 day up to 10 years under this special deposit scheme, which is available for a limited time until October 7th, 2022. The special interest rate advantage provided under the ICICI Bank Golden Years FD for elderly persons would apply to both new and renewed deposits made throughout the active period of the scheme. Effective from May 21, 2022, the bank is offering the below-listed interest rates to senior citizens on fixed deposits.
7 days to 14 days- 3.00%
15 days to 29 days- 3.00%
30 days to 45 days- 3.50%
46 days to 60 days- 3.50%
61 days to 90 days- 3.50%
91 days to 120 days- 4.00%
121 days to 150 days- 4.00%
151 days to 184 days- 4.00%
185 days to 210 days- 4.90%
211 days to 270 days- 4.90%
271 days to 289 days- 4.90%
290 days to less than 1 year- 5.00%
1 year to 389 days- 5.60%
390 days to < 15 months- 5.60%
15 months to < 18 months- 5.60%
18 months to 2 years- 5.60%
2 years 1 day to 3 years- 5.90%
3 years 1 day to 5 years- 6.10%
5 years 1 day to 10 years- 6.50%
5 Years (80C FD) – Max to ₹1.50 lac- 6.10%
This special deposit scheme was introduced on 18th May 2022 by HDFC Bank, and for the benefit of senior citizens the bank has claimed on its website that “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’2022."
The bank is offering a 6.50 per cent interest rate on this special deposit, which is 0.75 per cent more than the standard rate. This special offer is valid for new fixed deposits as well as renewals by senior citizens throughout the scheme's active period. Applicable from 18th May 2022, the bank is offering the following interest rates on term deposits to senior citizens.
7 - 14 days- 3.00%
15 - 29 days- 3.00%
30 - 45 days- 3.50%
46 - 60 days- 3.50%
61 - 90 days- 3.50%
91 days - 6 months- 4.00%
6 months 1 days - 9 months- 4.90%
9 months 1 day < 1 Year- 5.00%
1 Year- 5.60%
1 year 1 day - 2 years- 5.60%
2 years 1 day - 3 years- 5.90%
3 year 1 day- 5 years- 6.10%
5 years 1 day - 10 years- 6.50%
IDBI Bank introduced this unique fixed deposit plan for resident senior citizen customers aged 60 and above on April 20, 2022. They will get an additional interest rate of 0.25 per cent on this deposit, in addition to the existing additional rate of 0.50 per cent every year. Senior citizens will get an additional 0.75 per cent over and above the standard rate on deposits of more than one year up to ten years throughout the scheme period, which runs until September 30, 2022. The following are the interest rates on term deposits for senior citizens as of April 20, 2022.
07-14 days- 3.20
15-30 days- 3.20
31-45 days- 3.50
46-60 days- 3.75
61-90 days- 3.90
91-6 months- 4.25
6 months 1 day to 270 days- 4.90
271 days upto < 1 year- 5.00
1 year- 5.65
> 1 year - 2 years- 6.00
> 2 years to < 3 years- 6.10
3 years to < 5 years- 6.25
5 years- 6.35
> 5 years - 7 years- 6.35
> 7 years - 10 years- 6.25
Source: Data as of bank websites.