Recently, HDFC Bank and IDBI Bank announced that their respective special fixed deposit (FD) schemes for senior citizens will end on October 1. HDFC’s policy is called the ‘Senior Citizen Care FD’ and was introduced on May 18, 2020, while IDBI’s is called ‘Naman Senior Citizen Deposit’ and was launched on April 20 two years ago.
HDFC’s Senior Citizen Care FD
As per Livemint, HDFC’s policy has maturity period of between 5 and 10 years, and the bank last modified its interest rates on August 18, on fixed deposits under ₹2 crore.
The offer is not available to non-resident Indians (NRIs), and if an FD is being closed on or before 5 years, the interest will be 1% below the contracted rate, or the base rate applicable for the duration for which the deposit has been with the bank, whichever lower.
On the other hand, the corresponding rate in case of closure after 5 years, 1 day but on or before 10 years, will be 1.25%. In this case, it is 6.50%, 75 basis points higher than the standard 5.75%, and the highest under the scheme.
IDBI’s Naman Senior Citizen Deposit
Under this, deposits mature after more than a year to 10 years. Older people can avail additional interest of 0.75% (0.25% over and above the existing additional 0.50% per annum + the existing rate). Only fresh accounts, as well as deposits renewed during the valid period of the programme, come under the extra rate.