/ICICI Bank launches an FD scheme for senior citizens: Here’s all you need to know

ICICI Bank launches an FD scheme for senior citizens: Here’s all you need to know

Over the past week, few banks have announced special fixed deposit (FD) schemes for senior citizens with a higher interest rate. Today, ICICI Bank today announced the launch of its scheme, ICICI Bank Golden Years FD with an interest rate of 6.55 per cent a year for deposits up to Rs 2 crore with a tenure of more than five years to 10 years.

According to the bank’s press release, the scheme is available from May 20 to September 30, 2020. The scheme, “Offers 80 basis points (bps) more than what is applicable to general public (non-senior citizens) for the same deposit amount and tenor. Also, it is 30 bps more than the previous rates offered by the Bank. Resident senior citizens can avail the benefit of this scheme for new FDs as well as renewal of old FDs,” stated the release.

“We are offering higher interest rates to them through the new scheme, even in the declining interest rate regime, as a mark of our respect to them. We believe that this scheme will help them to create a good pension kitty on their long term deposit and thereby enhance their convenience,” said Pranav Mishra, Head – Liabilities Group, ICICI Bank.

Here are more details of the ICICI Bank Golden Years FD.

  • For new and old FDs: The scheme will be applicable on fresh FDs as well as renewal of FDs
  • Loan against FD: The customers can avail a loan against their FD up to 90% of principal and accrued interest
  • Credit card against FD: The customers can apply for a credit card against their FD from the Bank.

Here is a look at what other banks are offering:

State Bank of India
SBI’s senior citizens FD, SBI WECARE Senior Citizens Term Deposit scheme is available for investment from 12 May 2020. According to the bank, the scheme has been launched to provide a higher interest rate to senior citizens in the current falling interest rate scenario as this category of investors are usually dependent on interest income. The scheme will fetch 0.8 per cent above the interest rate applicable to the general public.

HDFC Bank’s Senior Citizen Care FD offers an additional 75 basis points (bps) for deposits with more than 5-year tenors with investments up to Rs 5 crore. Those who want to invest in the scheme can do so between May 18, 2020 and September 30, 2020.

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