Several banks have recently lowered their fixed deposit (FD) interest rates from their notable highs after the Reserve Bank of India (RBI) paused its repo rate hikes in April this year.
Since April last year, RBI increased the repo rate by 250 basis points (bps) to 6.5 per cent in six revisions to tame India’s spiralling high inflation. Correspondingly, commercial banks increased their rates to compete with each other to attract more customers. However, with RBI’s rate pause, some banks have started cutting their FD rates for some tenures.
For instance, on June 1, 2023, the Punjab National Bank (PNB) reduced its rates for one-year tenure from 7.30 per cent to 7.25 per cent for senior citizens (60 years to less than 80 years) and from 7.60 per cent to 7.55 per cent for super senior citizens (80 years and above).
However, seniors still have options to lock in their fixed deposits at 7.5 per cent or above rate in some banks. Let us look at some FD schemes closing on June 30, 2023.
SBI WeCare
The last date to apply for the State Bank of India’s (SBI) SBI WeCare fixed deposit scheme for senior citizens is June 30, 2023.
The minimum investment duration in SBI WeCare is five years, and the maximum is 10 years.
Generally, senior citizens receive interest rates 50 basis points higher than ordinary people. In SBI WeCare, they will get 100 basis points higher, bringing the interest rate to 7.50 per cent.
They can earn the FD interest on a monthly or quarterly basis. They can also avail of a loan facility against the WeCare FD. Additionally, for any renewal of the maturing FDs, they would be eligible for the WeCare benefits before the deadline. One can subscribe to this scheme through SBI’s bank branches, net banking and its mobile app YONO.
SBI Amrit Kalash
The SBI Amrit Kalash fixed deposit scheme deadline has also been extended to June 30, 2023. It offers senior citizens a 7.60 per cent interest rate. According to the bank, the annualized yield would be around 7.82 per cent if the deposit is not withdrawn. The scheme has a lock-in of 400 days. Interest is payable on a monthly, quarterly, or half-yearly basis. One can sign up for this scheme through its net banking, YONO mobile app, or bank branch.
Indian Bank ‘IND SUPER 400 DAYS'
Indian Bank has also extended the deadline for investing in the ‘IND SUPER 400 DAYS’ fixed deposit scheme to June 30, 2023. It offers 7.75 per cent to senior citizens and 8.00 per cent to super senior citizens. The minimum FD investment amount is Rs. 10,000.
