Senior citizens get more interest on term deposits than normal depositors, banks are withdrawing term deposit schemes paying even more interest for them.
The Senior Citizen Savings Scheme is a medium for assured and better returns for the elderly. Meanwhile, amidst the declining interest rates of fixed deposit schemes of banks, public and private banks have launched special schemes for elderly depositors. State Bank of India (SBI), Bank of Baroda, Punjab National Bank, HDFC Bank, ICICI Bank Has announced to pay more than the interest received to the depositors. These banks have come out with a special fixed deposit scheme for senior citizens, which is paying more than the fixed rate of interest. Banks say that in view of the constantly decreasing interest rates of term deposit schemes, schemes with higher interest rates have been launched for senior citizens.
This scheme for senior citizens is only till 31 December 2020.
In SBI's special FD scheme, the interest rate has been kept at 80 percent basis point. The interest rate of this fixed deposit scheme, which matures in five years, is 6.20 percent.
HDFC has launched a scheme called HDFC Senior Citizen Care. Under this, the interest rate of five-year fixed deposit scheme has been kept at 6.25 percent.
ASICI Bank will pay one percent more interest to Senior Citizens. For Senior Citizens, the interest rate of its fixed deposit scheme is 6.30 per cent for five years to ten years.
Bank of baroda
Bank of Baroda has also decided to pay more than the fixed rate of interest on fixed deposit scheme for senior citizens. Under this, 6.30 percent interest will be given on FDs ranging from five years to ten years.