Recent announcements from two significant private lenders, HDFC and IDBI Banks, indicate that they would cease their respective senior-focused special fixed deposit (FD) programmes on October 1. When COVID-19 first started, the majority of the lenders launched their programmes. Since then, several of them have been winding them down. On May 18, 2020, HDFC debuted its Senior Citizen Care FD, while IDBI launched its Naman Senior Citizen Deposit on April 20, 2020.
Senior Citizen Deposit for Naman by IDBI
With this programme, elderly persons receive an additional 0.75% interest rate (0.25% over and above the current additional 0.50% per year plus the existing rate). It matures over a period of more than a year to 10 years.
Senior Citizen Care FD from HDFC
It takes between five and ten years for it to reach maturity. Non-resident Indians are not eligible for this programme (NRIs). Customers that choose the senior citizen care FD offer will receive 0.75% more interest. When interest due or reinvested on RD and FDs for a single client across all branches reaches Rs. 40,000 (Rs. 50,000 for senior persons) in a fiscal year, TDS will be deducted.
If a Fixed Deposit booked under the aforementioned offer is prematurely closed (including swept in or partially closed) on or before the stipulated 5-year term, the interest rate will be 1.00% lower than the contracted rate or the base rate in effect at that time, whichever is lower.
