THESE two banks closing down their special senior citizen fixed deposit (FD) schemes from October 1, 2022

Two significant private lenders HDFC and IDBI Banks recently stated that they would cease their separate senior-focused special fixed deposit (FD) programmes on October 1.

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New Delhi: Two big private lenders HDFC and IDBI Banks have announced recently to shut down their respective special fixed deposits (FD) schemes for senior citizens on October 1. Most of the lenders began the scheme during the beginning of Covid-19, now some of them have been closing down these schemes. HDFC’s Senior Citizen care FD was introduced on May 18, 2020, whereas IDBI’s Naman Senior Citizen Deposit was kicked off on April 20, 2020.

IDBI’s Naman Senior Citizen Deposit

This scheme gives older people additional interest of 0.75% (0.25% over and above the existing additional 0.50% per year plus the existing rate). It has a maturity time period of over a year to 10 years.

HDFC’s Senior Citizen Care FD

It has a maturity period of between 5 and 10 years. This scheme is not available to non-residents Indian (NRIs). Customers can enjoy 0.75% extra interest rate with senior citizen care FD offer. TDS will be deducted when interest payable or reinvested on RD and FD per customer across all branches, exceeds Rs.40,000/- (Rs. 50,000/- for senior citizens) in a financial year.

In case of premature closure of Fixed Deposit booked in the above offer (including sweep in / partial closure) on or before 5 years, the interest rate will be 1.00% below the contracted rate or the base rate applicable for the period the deposit has remained with the bank, whichever is lower.