A number of Indian banks, including the State Bank of India, ICICI Bank, Bank of Baroda and HDFC Bank, had initiated a special fixed deposit scheme to help senior citizens get higher interest rates amidst the pandemic. The special FD scheme was started about two years ago only for a small time period. However, banks extended it as the impact of Covid-19 on tax system was huge.
Now that the economy has started recovering, two banks – namely HDFC Bank and Bank of Baroda are likely to end this scheme. The extended deadline for the special FD scheme for senior citizens at these banks is nearing and no further extension has been announced as yet.
Here’s all about the senior citizen special FD scheme announced by the two banks
HDFC Bank Senior Citizen Care FD
The HDFC bank had initially offered the ‘HDFC Bank Senior Citizen Care FD’ with an additional 25 bps FD interest rate on tax saving fixed deposit for the longer tenor i.e. 5 to 10 years fixed deposits. This scheme offers 0.25 per cent additional interest than the 50 bps interest rate otherwise offered to senior citizens on their fixed deposits for 5 to 10 years.
The deadline of this scheme is scheduled for March 31, 2022. If the bank doesn’t make any further announcement, the scheme will end from April 1, 2022.
Bank of Baroda special FD scheme for senior citizens:
The Bank of Baroda also started offering a special FD scheme for senior citizens that allowed an FD account holder aged above 60 years to get 1 per cent additional annual return on the deposited amount. The public sector bank provides 0.50 per cent additional return to senior citizen FD account holders on 5 to 7 years tenor.
Notably, the bank offers an additional 50 bps annual return on tax saving FDs to senior citizens.
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