Banks had earlier introduced this scheme for a select period. However, Bank of Baroda and HDFC Bank now seem to be ending this scheme on March 31, 2022. There has been no statement from the banks regarding running this scheme further.
Special FD Scheme
Many banks of the country have introduced special FD scheme for senior citizens (Senior citizen special FD scheme) was started. It was launched 2 years back. This scheme was specially made for senior citizens only. This scheme gives higher than normal interest to senior people on special fixed deposits. But now this scheme is closing on 31st March. After running the scheme for two years, there is a preparation to be closed. State Bank Of India (SBI), ICICI Bank (ICICI BankIt was started by Bank of Baroda and HDFC Bank. Although SBI has already announced to increase it, but other banks have not said anything. If a senior citizen wants to invest in this scheme, then he can do it till March 31. There will be no chance after that.
After March 31, no one’s account will be opened in the special FD, but those who are already investing will continue to get the benefit of investment till maturity. In the midst of the COVID epidemic, banks had started this special FD so that higher returns could be given on the deposits of senior citizens. Special FD schemes offer higher returns than normal fixed deposits. Banks had earlier introduced this scheme for a select period. However, Bank of Baroda and HDFC Bank now seem to be ending this scheme on March 31, 2022. According to a report in ‘DNA’, both the banks are yet to announce whether they will extend the deadline or not.
Benefits of Special FD Scheme
HDFC Bank had introduced the ‘HDFC Bank Senior Citizen Care FD’ scheme to offer an additional 25 bps or 0.25% interest rate on FD investments with a maturity period of 5 to 10 years. The additional 25 bps or 0.25% interest rate is in addition to the 50 bps or 0.50% interest rate offered to senior citizens on FD investments maturing between 5 and 10 years. Those who want to invest in this, they can invest their money in the special FD scheme till 31 March 2022.
Like HDFC Bank, Bank of Baroda is also offering higher interest rates on FD investments made by senior citizens. Bank of Baroda or BoB offers an additional 0.50% interest rate on FD investments maturing between 5 and 7 years. Also, this state-run bank offers an additional 50 bps annual return on tax-saving FDs to senior citizens.
SBI increased the scheme
State Bank of India (SBI) had started SBI WeCare scheme for senior citizens. This is a special FD scheme under which the last date of account opening has been extended till 30th September, 2022. SBI offers attractive interest rates for investments made by senior citizens. SBI Wecare Deposit was introduced for senior citizens in the retail time deposit segment. Under this scheme, senior citizens have been offered higher interest rates due to the ongoing coronavirus pandemic.
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