Keeping in mind the coronavirus epidemic, some banks brought a special offer in May for the convenience of the elderly. Under this, FDs with fixed maturity period were offered an additional interest of up to 0.50 per cent above the interest rate applicable to senior citizens. That is, up to 1 percent more interest than the regular customer interest. The banks which offered this include SBI, HDFC Bank, ICICI Bank and Bank of Baroda.
Earlier this high interest could be availed till September 2020, but later all four banks extended this special offer till December 2020. But SBI has recently announced that it is extending this additional interest facility to senior citizens till March 2021. But there is no new announcement from the remaining three banks HDFC Bank, ICICI Bank and Bank of Baroda.
This means that senior citizens at HDFC Bank, ICICI Bank and Bank of Baroda have a chance to get 1% more interest on FDs till December 31, 2020. Let us tell you the details of the special offers brought by these three banks to senior citizens…
HDFC Bank
In the case of FDs below Rs 5 crore in HDFC Bank, senior citizens are offered 0.50 percent on all maturity periods. But due to COVID 19 circumstances, the bank is offering an additional 0.25% interest rate to senior citizens on FDs of ‘5 years, 1 day to 10 years’ till 31 December 2020, that is, at this maturity period, they will be given a regular interest rate. 0.75 percent more interest will be achieved. It has been named Senior Citizen Care FD. Apart from those who open a new FD account by December 2020, it will also benefit those who renew their accounts.
Under Senior Citizen Care FD, the interest received on prematurely closing of a fixed deposit before completion of 5 years will be 1% less than the fixed rate. On completion of 5 years FD interest will be 1.25 per cent less than the fixed rate on closing prematurely. At this time, senior citizens are getting interest ranging from 3% to 6.25% on FD in HDFC Bank.
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Bank of baroda
In the case of a collateral FD of less than Rs 2 crore in Bank of Baroda, 0.50 per cent higher interest is applicable on all FD periods for senior citizens. But given the special circumstances of COVID 19, under the special offer, 1% higher interest is being offered to senior citizens on FDs ranging from ‘5 years to more than 10 years’, which will now be applicable till 31 December 2020. In the Bank of Baroda, the elderly are currently getting an annual interest ranging from 3.30 per cent to 6.25 per cent on FD.
ICICI Bank
ICICI Bank has run ‘Golden Years FD’ for senior citizens in COVID 19 years. Under this special FD, up to 2 crore FDs with duration of ‘5 years 1 day to 10 years’ till December 31, senior citizens are being given an additional interest of 0.30 percent over the pre-decided 0.50 percent plus interest. That is, a total interest of 0.80 percent more than the regular FD rate. This benefit will also be available on renewing old FD as well as new FD. But if the Golden Years FD is prematurely closed or withdrawn after 5 years and 1 day, then a penalty of 1.30% will be levied. On the other hand, if withdrawal or closure is done before completion of 5 years 1 day, then the premature withdrawal policy of the bank will be applicable. Senior citizens are currently getting interest ranging from 3% to 6.30% per annum on ICICI Bank FD.
Source: www.financialexpress.com