Special Bank Fixed Deposits schemes for senior citizens extended till June 30.
Special Bank Fixed Deposit schemes for senior citizens have been extended till June 30, 2021. Most of the senior citizens, especially those whose long-term deposits are coming up for renewals are in a fix as around 5.5% return is being offered by bank fixed deposits for tenures up to 5 years.
Some banks had introduced special Fixed Deposits plans for senior citizens for the tenure of 5 years and more back in May 2020. In addition to the extra rate that they were already entitled to, an additional rate was applicable to the senior citizens upon investing in such schemes. A senior citizen seeking investment for a long term in a bank fixed deposit can now do so till June 30, 2021.
The four leading commercial banks - , , and , have announced special fixed deposit schemes for the advantage of senior citizens. While an additional 0.5% interest is offered by the regular fixed deposit schemes to the depositors who are above 60 years of age, the special fixed deposit schemes for senior citizens provide an additional rate of interest. The additional rate will be available on freshly opened deposits as well as deposits renewed during the scheme period.
There is an additional rate of interest over and above the existing rate of 0.50 per cent on deposits by senior citizens under the special fixed deposit scheme. Effectively, on deposits above 5 years, there will be an additional interest rate of 0.80 per cent or more.