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Top 6 Senior Citizens Saving Schemes by LIC, SBI, HDFC & ICICI Banks; List of FD Schemes & Their Benefits

Tooba Maher
Tooba Maher
Senior Citizens Schemes

Worried about your future? Today in this article we will inform you about top 6 schemes that will help you to have a secured future. Though, many people focus on making money by actually forgetting about making provisions for a secure future. So, here we are to guide you step by step for a healthy and safe future without any worries. Don’t forget that it’s never too late to start investing, ensure now your source of income after retirement!

Top 6 Senior Citizens Schemes by LIC, SBI, HDFC

1. The Pradhan Mantri Vaya Vandana Yojana (PMYVVY)

Pradhan Mantri Vaya Vandana Yojana or PMYVVY is a pension plan for senior citizens which is managed & operated by Life Insurance Corporation (LIC). The PMVVY was launched in 2017, until May 31 2020. However, recently it was modified by the Finance Ministry and extended till 31 March 2023.

PMVVY Features:

It permits pension seekers to pay a lump sum of money any time after the age of 60 years. By depending on the amount invested, senior citizens can withdraw a minimum of Rs 1000 to a maximum of Rs 9250 monthly. The maximum investment allowed per person is Rs 15 lakh.

Benefits:

  • In the Financial Year 2020-2021, the scheme will give an assured fixed return rate of 7.40 per cent per annum for duration of 10 years.

  • One can claim the pension monthly, quarterly, half-yearly, and yearly mode of payments.

    But, if the pensioner dies during the policy term of 10 years, the purchase price will be refunded to the beneficiary.

  • However, as a maturity benefit, if the pensioner survives until the end of the policy term, then final pension instalment & purchase price will be paid.

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2. LIC Jeevan Shanti Scheme

LIC Jeevan Shanti scheme was started to provide insurance-seekers with various options to earn income. This policy is a one-time premium payment plan with return options available in two variants i.e. immediate and deferred annuity.

Its features:

  • Immediate Annuity: In it the returns can be claimed immediately after payment of the premium. One can receive them monthly, quarterly, bi-annually and annually.

  • Deferred Annuity: Here returns can be claimed after a specified period. An option of life-risk coverage is also provided.

  • Under LIC Jeevan Shanti scheme, one can make a minimum investment of Rs.1.5 lakh with no maximum limit.

  • The eligibility criteria ranges between 30 - 85 or 100 years for an immediate annuity & 79 years and above for deferred annuity schemes.

Benefits:

  • Under it, the immediate annuity plan can be purchased as a self-life or joint-life with spouse, children, siblings or grandparents.

  • One can take it for the benefit of handicapped dependent.

  • Loan facility is available after successful completion of 1 policy year.

  • The policyholder can surrender the policy anytime after completing three months where annuity along with purchase price is returned.

3. SBI Life Saral Pension Plan

SBI Life Saral Pension Plan is an individual, non-linked, participation, savings pension scheme. This saving scheme focuses to generate income during retirement years. The maximum entry age here is 65 years.

SBI Life Saral Pension Plan- Features

It offers guaranteed bonuses for the first 5 years of the policy, i.e. 2.50% for the first three years and 2.75% for the next two.

SBI Life Saral Pension Plan- Benefits

  • The plan provides loan tenure from age of 10-40 years.

  • It is eligible for Income Tax Benefit according to applicable income tax laws in India

  • The minimum premium that one can pay annually is Rs 7500, with no cap on the maximum limit.

  • The premium benefits can also be claimed in a monthly, quarterly, half-yearly, or yearly frequency.

  • The maturity age for the SBI Life Saral Pension plan is a minimum of 40 years and a maximum of 70 years. The minimum sum assured is Rs 1 lakh & no maximum limit.

Senior Citizens FD Schemes by SBI, HDFC & ICICI Banks

The State Bank of India (SBI), HDFC Bank, & ICICI Bank has recently launched special FD schemes targeting only senior citizens for safeguarding their financial interests as interest rates are falling quickly. It can be noted that the schemes offered by the 3 banks are applicable for new accounts, & the renewal accounts. But, policies will be available only for a limited period of time until September 30, 2020.

4. SBI WeCare

SBI WeCare scheme (FD scheme) focuses to protect the income of senior citizens by offering them additional interest on Term Deposits.

Features & benefits:

  • SBI WeCare offers 6.50% interest rate.

  • You can invest for a minimum of 5 years & a maximum of 10 years. There is no tax benefits offered.

  • Premature withdrawal from the scheme will give a 6.2% interest rate.

5. HDFC Bank Senior Citizen Care FD

This HDFC bank FD scheme offers higher interest rates to senior citizens & an additional 75 basis points (bps) for deposits with a time of more than 5 years.

Benefits:

  • It offers interest rates of 3.5% for deposits maturing in 7 days & 6.50 per cent for deposits maturing in 10 years

  • If there is premature closure, post 5 years a penalty of 1.25% is levied on the original interest. Before 5 years, a penalty of 1 percent will be charged.

6. ICICI Bank Golden Years FD

The ICICI Bank Golden Years FD offers 6.55% interest rates to senior citizens for deposits up to Rs. 2 crores with a time of more than 5 to 10 years.

Benefits:

  • This FD scheme offers 80 basis points (bps), more than what applies to the general public, for deposits with a time of more than 5 to 10 years.

  • Interestingly, this scheme applies to NRIs also.

  • Customers can avail a loan against their FD up to 90 percent of principal with accrued interest.

  • A credit card can also be availed against their FD.

Source: The Better India

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