Srinagar, Dec 24: As the cost of living and inflation is going up, senior citizens are looking for ways to invest their money in instruments that offer good returns to ensure that they are financially stable. Bank fixed deposits (FDs) and the Senior Citizen Savings Scheme (SCSS) is the ideal investment opportunities, keeping the long-term stability aspect and added additional benefits into consideration.
However, recently a lot of lenders have cut bank FD rates which has led to people looking for other investment instruments. In order to lure customers back, top lenders like State Bank of India (SBI), HDFC Bank, ICICI Bank and Bank of Baroda (BoB) are offering extra interest rates over the existing rates on fixed deposits (FD) applicable for senior citizens. The scheme was made available for investment from May.
HDFC Bank, ICICI Bank and Bank of Baroda also offer senior citizens special FD scheme:
1. HDFC Bank special FD scheme for senior citizens: The bank offers 75 bps higher interest rate on these deposits. If a senior citizen puts a fixed deposit under HDFC Bank Senior Citizen Care FD, then interest rate applicable to the FD will be 6.25%. These rates have been effective from November 17. Senior Citizen Care FD is valid till December 31, 2020
2. ICICI Bank special FD scheme for senior citizens: ICICI Bank special FD scheme for senior citizens is called ‘ICICI Bank Golden Years’. The bank offers 80 bps higher interest rate on these deposits. ICICI Bank Golden Years FD scheme offers senior citizens an interest rate of 6.30% per annum. These rates are effective 21 October. The scheme is applicable till December 31, 2020.
3. Bank of Baroda special FD scheme for senior citizens: Bank of Baroda offers 100 bps higher on these deposits to senior citizens. If a senior citizen puts a fixed deposit under the special FD scheme (above 5 years to up to 10 years), then the interest rate applicable to the FD will be 6.25%. These rates are effective from 16 November.
It is worth mentioning that amid the Covid-19 pandemic, these special FD schemes were introduced to safeguard the interests of senior citizens as the interest rates were falling rapidly. While SBI has extended its senior citizens special FD scheme till March 31, 2021, only seven days are left to invest in senior citizens special FD schemes of other lenders: