A special fixed deposit scheme was launched by a number of Indian banks, including the State Bank of India, ICICI Bank, Bank of Baroda, and HDFC Bank, to enable senior citizens to obtain higher interest rates during the pandemic.
The unique FD scheme was only in place for a small time period. Banks, on the other hand, extended it since Covid-19 had such a large influence on the tax system.
Now that the economy is beginning to improve, two banks, HDFC Bank and Bank of Baroda, are likely to end the scheme. The extended deadline for these banks' special FD scheme for senior citizens is approaching, and no additional extensions have been announced.
Here's everything you need to know about the two banks' special FD scheme for senior citizens.
HDFC Bank Senior Citizen Care FD
The HDFC bank had previously provided the 'HDFC Bank Senior Citizen Care FD' with an additional 25 basis points FD interest rate on tax-saving fixed deposits for tenor of 5 to 10 years.
This scheme adds 0.25 percent to the 50 bps point interest rate normally paid to senior citizens on fixed deposits maintained for 5 to 10 years. The scheme's end has been set for March 31, 2022. The scheme will end on April 1, 2022, unless the bank makes another announcement.
Bank of Baroda special FD scheme for senior citizens
The Bank of Baroda also began providing a special FD scheme for senior citizens, which allowed FD account holders over the age of 60 to earn an extra 1% yearly return on their deposits.
The public sector bank offers a 0.50 percent extra to senior citizen FD account holders with a tenor of 5 to 7 years. In particular, the bank provides senior citizens with a 50 bps point yearly return on tax-saving FDs.
