Special Fixed Deposit Schemes for Senior Citizens - HDFC, SBI, and ICICI Bank’s Current Rates

State Bank of India (SBI) and few private banks (ICICI and HDFC) have launched special fixed deposit schemes for the senior citizens of the country. These fixed deposit schemes are provided for safeguarding the interest of senior citizens as the rate of interest of FD is falling at a rapid rate. These banks are offering an extra rate of interest on the existing rates that are applicable for the senior citizen fixed deposits.

Read more
Best Investment Options
  • Save upto ₹46,800 in tax under Sec 80C

  • Inbuilt Life Cover

  • Tax Free Returns Unlike FD+

We are rated~
rating
6.7 Crore
Registered Consumers
51
Insurance Partners
3.4 Crore
Policies Sold
Get Guaranteed returns along with life cover
invest in 100% Guaranteed Return Plans Tax benefits under sec 80C & No Tax on returns+
+91
Secure
We don’t spam
View Plans
Please wait. We Are Processing..
Your personal information is secure with us
Plans available only for people of Indian origin By clicking on ''View Plans'' you, agreed to our Privacy Policy and Terms of use #For a 55 year on investment of 20Lacs Tax benefit is subject to changes in tax laws
Get Updates on WhatsApp
We are rated~
rating
6.7 Crore
Registered Consumers
51
Insurance Partners
3.4 Crore
Policies Sold

Special FD Scheme for Senior Citizens from State Bank of India

  • The special FD scheme by SBI for senior citizens is also known as ‘SBI We Care’.
  • The tenure of this scheme is five years.
  • This scheme is available for the customers from 12th May 2020.
  • The new rate of interest is 80bps higher.
  • Rate of Interest: If a senior citizen keeps an FD under the special scheme of FD, then the rate of interest that applies to this FD scheme will be 6.20%. These SBI FD rates are applicable from 27th May 2020.
  • Premature Withdrawal: Upon premature withdrawal, the extra 30bps are not paid.
  • A penalty of 0.5% can be applied.
  • The maximum amount that a senior citizen can deposit in this scheme is less than Rs. 2 Crore.

Special FD Scheme for Senior Citizens from HDFC Bank

  • The special FD scheme by HDFC Bank for senior citizens is known as HDFC Senior Citizen Care.
  • The tenure for this scheme ranges from five years one day to 10 years.
  • The HDFC Bank made this scheme available from 18th May 2020.
  • The new rate of interest for this scheme is 75 bps higher.
  • Rate of Interest: If a senior citizen opts for this scheme, then the rate of interest applicable to the fixed deposits will be 6.25%. Under this HDFC Senior Citizen Care scheme, an additional 25 bps are paid to the senior citizens. These new rates are applicable from 12th June 2020.
  • Premature Withdrawal: Upon premature withdrawal, a penalty of 1% is applied, if a senior citizen withdraws from the scheme before completion of five years.
  • Maximum Deposit Amount: The maximum amount that a senior citizen deposit under this scheme is less than Rs.2 Crore.

Special FD Scheme for Senior Citizens from ICICI Bank

  • The special FD scheme by ICICI Bank for senior citizens is also known as ICICI Bank Golden Years.
  • This scheme has been made available by the ICICI Bank from 20th May 2020.
  • The tenure of this scheme ranges from five years one day to 10 years.
  • Rate of Interest: The new rate of interest for this scheme is 80bps higher.
  • So, the rate of interest offered by the ICICI Bank for this FD scheme for senior citizens is 6.30% / annum.
  • Premature Withdrawal: If one withdraws before completion of five years, then a penalty of 1% is applied.
  • If a senior citizen withdraws after five years one day, then the penalty of 1.30% is applied.
  • The maximum deposit amount in this scheme can be less than Rs. 2 Crore.

How TDS Is Charged on Fixed Deposit Schemes for Senior Citizens?

TDS or Tax Deduction at Source is a method of deducting the tax at the income source. When we talk about NBFCs, fixed deposits, and Banks the tax from the interest accrued before crediting it to the account of the depositor. However, in the case of cumulative payment of interest, TDS is charged as per the interest accrued, which is yearly, half-yearly, quarterly, or monthly.

The rate at which the tax is deducted for the interest earned by senior citizen fixed deposits is 10% when the interest earned exceeds Rs. 50, 000 opposed to regular citizen's interest earned, which is Rs. 40,000.

Documents Needed for Opening a Senior Citizen Fixed Deposit Account

A senior citizen should check the following documents for opening a fixed deposit account in any non-banking financial institution or bank:

  • Photo ID proof (Voter ID Card, passport, etc.)
  • Proof of resident (Passport, Aadhaar card, latest water bill /electricity bill, etc.)
  • Proof of age
  • Form 15H
  • PAN Card or Form 60, in case of unavailability of PAN card

Eligibility Criteria:

The majority of the Indian banks consider senior citizens to those people who are of or more than 60 years.

In addition to this, there are some banks and financial institutions who consider super senior citizens also. Super senior citizens are those who are more than 80 years. These are the people who are given extra interest rates on fixed deposits over the interest rates that are offered to the senior citizens.

Advantages of Fixed Deposits for Senior Citizens

The senior citizens get the following advantages with a fixed deposit account:

  • Higher Rate of Interest: The rate of interest for fixed deposits offered for senior citizens is higher than the rate of interest that is offered for normal people.
  • Secure and Safe Investment: If you invest in a bank’s fixed deposit, then you are investing in one of the secure and safest mediums. This is because most of the banks are regulated by the Reserve Bank of India.
  • Guaranteed Returns: The returns of a fixed deposit account are always the same despite the current scenario of market or inflation.
  • Periodic Pay-Out Option of Interest: A senior citizen can select the frequency of the interest pay-out on a yearly, quarterly, or monthly basis.
  • Automatic Renewals: Most of the banks nowadays provide the feature of automatic renewals when the FD matures. This clearly says that if the depositor (in this case senior citizen) has not made any instruction while opening an account, then the FD is renewed automatically on the date of maturity. The period for which the auto-renewal facility is offered for FD is the same for which it was placed initially.

Final Words!

If you want to know which bank is the best for fixed deposits, then the aforementioned description must have given you the answer. Under the FD schemes of these banks, the senior citizens get special interest rates.

*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply
^Trad plans with a premium above 5 lakhs would be taxed as per applicable tax slabs post 31st march 2023
+Returns Since Inception of LIC Growth Fund
~Source - Google Review Rating available on:- http://bit.ly/3J20bXZ

highest guaranteed return
Disclaimer: Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.

FD Rates articles

Recent Articles
Popular Articles
Monthly FD Interest on ₹1 Crore

15 Apr 2024

A Fixed Deposit (FD) scheme helps to earn monthly FD interest on
Read more
Monthly FD Interest on ₹50 Lakh

11 Apr 2024

This article will help you to explore the potential returns of
Read more
How to Make the Most of Your Fixed Deposits with a Fixed Deposit Calculator in 2024

08 Jan 2024

Fixed deposits, with their guaranteed returns and relative
Read more
Mistakes To Avoid While Choosing Corporate Fixed Deposit

08 Jan 2024

When it comes to choosing Corporate Fixed Deposits, steering
Read more
How Does an FD Calculator Help Select the Right FD Scheme in 2024?

08 Jan 2024

In 2024, the role of Fixed Deposit calculators becomes
Read more
Application for Withdrawal of Fixed Deposit
Fixed Deposits are the safest investment instruments. You invest the amount of your choice as the fixed deposit
Read more
Nominee Vs Legal Heirs for Fixed Deposits
Fixed deposits are a popular investment option for individuals who wish to earn a stable rate of interest on
Read more
SBI Fixed Deposit Monthly Income Scheme
Fixed deposits are the safest investment vehicles for Indian financial planners. You can open a fixed deposit
Read more
ICICI FD Premature Withdrawal Penalty Calculator
ICICI offers various fixed deposit schemes which are highly liquid. The fixed deposit schemes allow partial
Read more
Fixed Deposit Monthly Income Scheme
The monthly income scheme of Fixed Deposit has gained popularity among investors. It is considered liquid as it
Read more

top
Close
Download the Policybazaar app
to manage all your insurance needs.
INSTALL