New Delhi: The Unique FD Scheme for Senior Citizens is provided by leading banks such as the State Bank of India (SBI), HDFC Bank, ICICI Bank and also Bank of Baroda (BOB). In these systems, banks offer higher interest rates than the current rates applicable to bank deposits. A special FD scheme has been introduced to protect the interests of the elderly during the rapid decline in interest rates on deposits due to the Coronavirus epidemic. A special FD program for Adults is available until 31 March 2021.
Baroda Bank Special FD Scheme Bank
Bank of Baroda offers 1 percent (100 basic points) higher interest rates to older citizens on these deposits. Under the special FD program (five to ten years), if an older citizen receives FD, also it is to be noted that the interest rate would be 6.25 percent on the FD.
ICICI Bank Special FD Scheme
ICICI Bank offers a high-interest rate of 0.80 percent on these deposits. ICICI Bank offers the Golden Year FD Scheme for Adult Residents at an interest rate of 6.30% per annum.
HDFC Bank Special FD Scheme
HDFC Bank offers a high-interest rate of 0.75 percent on these deposits. If an older citizen does FD under HDFC Bank Senior Citizen Care FD, then FD will attract an interest rate of 6.25%.
SBI Bank Special FD program
The SBI’s special scheme for Senior Citizens earns 0.80% more interest than the interest rate applicable to ordinary people. Currently, the bank pays 5.4 percent interest on FD for five years to general customers. If a senior citizen receives FD from SBI Bank under a special FD program, the interest rate will be 6.20 percent.
Meanwhile, providing assistance to the country’s elderly, the government in Budget 2021, has also exempted the elderly, pensioners and interest earners, from filing tax returns. In unveiling the Union’s 2021 Budget, Sitharaman said the central government would reduce the time limit for reopening exams to 3 years from the current 6 years.