Banks have extended the duration of Special Senior Citizen Fixed Deposit (FD). This scheme ended in March this year. Now its duration has been extended to 30 June. Banks started this special scheme for senior citizens when the corona virus epidemic started last year. The aim was to provide more interest to the senior citizens on FD.
Senior citizens depend to a large extent on the FD scheme of banks. They have to face difficulties when interest rates fall.
SBI has said on its website that the duration of the ‘SBI VCare’ scheme has been extended to 30 June. The bank pays more interest in this scheme on FDs of five and above duration.
At present, the bank pays 6.2 percent interest to senior citizens and 5.4 percent interest to common people on FDs of five years or more. This interest is applicable on deposits of less than Rs 2 crore.
HDFC Bank has also extended the term of Senior Citizen FD Special Scheme. The bank pays an additional interest of 0.25 per cent in addition to the existing 0.5 per cent in this scheme to the senior citizen on a five-year FD. The bank launched on May 18 last year. Now this scheme will continue till June 30.
ICICI Bank has also extended the term of Special Senior Citizen FD Scheme till June 30. The bank has given its information on its website. It said that in addition to the additional 0.50 per cent to senior citizens, 0.30 per cent additional interest will be given in this scheme.