When it comes to parking one’s hard-earned money into safe investment tools, fixed deposit (FD) schemes are still the most sought-after ones looking at the volatility in the market. Most banks this year have revised their fixed deposit interest rates a couple of times in line with the Reserve Bank of India’s (RBI) repo rate. This fiscal, RBI has revised its repo rates four times from 4.40 per cent to 6.25 per cent. On average, banks, public and private, have increased their interest rates by up to 2 percentage points this fiscal.
In the last six months, major public and private sector banks, along with many small finance banks (SFB) have aggressively hiked FD rates for short-term and long-term deposits. In addition to this, many banks have launched special fixed deposit schemes offering attractive and higher rates for investors and senior citizens. Here are 4 special schemes that are offering more interest rates over and above the standard and will expire next year.
1. SBI Wecare Fixed Deposit Scheme
India’s largest lender State Bank of India launched its special FD scheme, SBI Wecare for senior citizens offering additional interest on term deposits. The scheme is targeted at new deposits and renewal of maturing accounts. The bank is offering the scheme for a minimum of 5 years and a maximum of 10 years with an additional premium of 30 bps, which is over and above the existing premium of 50 bps over the card rate for investors, which is 80 bps over the card rate for the public.
The existing interest rate for this scheme is 7.25 per cent per annum. The payment of interest on this term deposit is done monthly or quarterly. On maturity, the total interest plus the matured amount, after deduction of tax, is credited to the customer’s account.
The scheme will end on March 31, 2023.
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2. HDFC Senior Citizen Care FD
Private sector lender HDFC Bank is also offering a special fixed deposit scheme for senior citizens, Senior Citizen Care FD. The scheme has been around since May 18, 2020. The bank initially discontinued the scheme on September 30, 2022, but later reintroduced it. Under the scheme, HDFC Bank is offering an additional premium of 25 bps (over and above the existing premium of 50 bps) to senior citizen FD depositors on the tenure of 5 years 1 day to 10 years on deposits less than Rs 5 crores for tenures of 5 years 1 day to 10 years. The scheme is on till March 31, 2023.
3. ICICI Bank Golden Years
ICICI Bank is also offering a special fixed deposit scheme for its senior citizen customers, where it is offering an additional interest rate of 10 bps over and above the existing additional senior citizen FD rates of 50 bps. The interest rate is applicable on schemes for a tenure ranging from 5 years and 1 day to 10 years. The scheme is valid till April 7 2023 and is applicable on deposits of less than Rs 2 crore.
4. PNB’s 666-days fixed deposit
Public lender Punjab National Bank floated its 666 Days FD scheme on Christmas for its general investors and senior citizens. Under the special scheme, PNB is now offering a maximum interest rate of 7.25 per cent for the general public, 7.75 per cent for elderly individuals, and 8.05 per cent for super senior citizens on deposits that mature in 666 days.
