Certain banks and financial organizations provide a type of investment option known as a special fixed deposit (FD). Although it is subject to extra restrictions and conditions, such as tenure, deposit amount, early withdrawal penalty, and validity duration, it often offers an interest rate that is greater than a conventional fixed deposit.
During the initial wave of the Covid-19 pandemic, certain banks had established unique fixed deposits carefully managed especially for older persons, providing additional interest rate benefits on top of the already existing benefit of 50 bps higher interest rates for them.
Regarding special FD programs for seniors, IDBI Bank introduced its “IDBI Naman Senior Citizen Deposit” program for local seniors on April 20, 2022. Surprisingly, this agreement’s expiration date is March 31, 2023, according to the bank’s official website.
The “IDBI Naman Senior Citizen Investment” policy’s unique benefit is that “Resident Senior Citizen Users will Get an Improve Rate Of the return of 0.25% Over and Above Current Increased Rate of 0.50percent Per Per year (overall Mark-Up 0.75percent Over Payment Rate),” as according to IDBI Bank’s website.
The “IDBI Naman Senior Citizen Deposit” scheme’s unique advantage for older citizens, according to the bank, is only effective on tenors longer than one year and up to ten years.
All other benefits, terms, and conditions of a term deposit shall continue to apply and shall also apply to the foregoing plan. Throughout the duration of the scheme’s active time period, both newly created accounts and deposits renewed will be eligible for the higher rate.
Senior citizens who participate in the “IDBI Naman Senior Citizen Deposit” program will get interest rates of 7.50% on tenors longer than 1 year to 2 years (including 444 days and 700 days), 7.25% on longer than 2 years to 3 years, and 7.00% on longer than 3 years to 10 years. Through the end of March 2023, elders will pay these interest rates, which are 75 basis points higher than the standard rates.
By March 31, 2023, the nation’s two biggest lenders, SBI and HDFC Bank, will likewise discontinue their unique fixed deposit programs for older persons. On February 15, 2023, SBI launched 400 days “(Amrit Kalash) FD program with 7.60% interest for older persons and 7.10% interest for the general public.
On the other hand, HDFC Bank launched its “Senior Citizen Care FD” in May 2020 “and following multiple extensions, the program would ultimately come to an end on March 31, 2023, pending any other additions.
The program is available for fixed deposits of less than 5 crores with terms ranging from 5 (five) years and a day to 10 years. As part of the program, HDFC Bank is providing an additional premium of 0.25% in addition to the existing premium of 0.50%.
watch in Hindi on Youtube