India's leading private sector bank, ICICI Bank, is going to end its special Fixed Deposits (FD) scheme for senior citizens on April 8, 2022.
In May 2020, the bank had introduced the scheme with additional benefits for elderly people in order to assist them to cope with the negative interest regime.
What’s the special scheme?
The bank had unveiled a special fixed deposit scheme for senior citizens called ‘ICICI Bank Golden Years FD’.
Under the scheme, the bank offers an exclusive additional interest rate of 0.25 percent per year on fixed deposits held by elderly people for more than 5 years and up to 10 years.
In general, senior citizens receive a 0.50 percent higher interest rate on their deposits than the general public.
Since the launch of the scheme, the bank has promised an additional 0.25 percent interest rate over and above the existing additional rate of 0.50 percent per annum for senior citizens.
The bank introduced the programme for a term of 5 years 1 day up to 10 years, with the applicable period being May 20, 2020, to April 8, 2022.
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Premature withdrawals
For premature withdrawals made during the lock-in period of 5 years to 10 years, ICICI Bank has mentioned on its website that "In case deposit opened in above scheme is prematurely withdrawn/closed after, on or after 5 years 1 day, the applicable penal rate will be 1.25%."
"In case the deposit opened in the above scheme is prematurely withdrawn/closed before 5 years 1 day, the prevailing premature withdrawal policy will be applicable," it added.
Interest rates on FD
The bank gives a regular rate of 5.60 percent on fixed deposits of less than Rs 2 crore maturing in 5 years 1 day to 10 years.
However, under the Golden Years FD, ICICI Bank will offer an interest rate of 6.35 percent, which is a jump of 0.75 percent.
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