Fixed deposits are the debt product that salaried individuals and, particularly, senior citizens favour most. Assured rate of return, liquidity, flexible tenure, section 80C benefit, and special rates for elderly individuals are all key features of fixed deposits. Because a fixed deposit is unaffected by market volatility, you will receive a guaranteed return on your investments at the end of the maturity period but what is icing on the cake is the DICGC insures principal and interest on your investments up to a maximum of five lakhs, which enhances the security aspect of fixed deposits.
Yet, because of the hike in the repo rate, interest rates on fixed deposits have been rising. The repo rate was increased by 25 basis points to 6.5 percent in February by the Monetary Policy Committee (MPC), which is led by RBI Governor Shaktikanta Das. Since May 2022, the interest rate has gone up six times, for a total hike of 250 basis points. Amid the repo rate hike, on 20th April 2022, IDBI Bank announced a special fixed deposit scheme named “IDBI Naman Senior Citizen Deposit” for senior citizens.
IDBI Naman Senior Citizen Deposit
1. Who can apply: An individual resident who is 60 years or above in age but less than 80 years, can apply for IDBI Naman Senior Citizen Deposit.
2. Tenure: IDBI Naman Senior Citizen Deposit can be booked for a fixed tenure of above 1 year and up to 10 years.
3. Scheme validity: 20th April 2022 to 31st March, 2023
4. Interest rate: Senior citizens will get an additional interest rate of 0.25% over and above the existing additional rate of 0.50% per annum, taking the total benefit to 75 bps under IDBI Naman Senior Citizen Deposit. Both newly established accounts and deposits that have been renewed during the scheme’s existence are eligible for additional interest rate benefit.
5. Minimum deposit amount: By booking a IDBI Naman Senior Citizen Deposit with a minimum amount of Rs.10,000, senior citizens will be eligible to earn a 0.75% additional interest rate over and above the regular rate.
6. Premature withdrawals: Naman Senior Citizen Fixed Deposits allows premature withdrawals. The bank will charge a 1% penalty on the applicable rate for any such premature withdrawals, including sweep-ins and partial withdrawals.
7. How to apply: Naman Senior Citizen Deposit can be booked via, calling on IDBI Bank phone banking numbers Toll-Free – 1800-209-4324 and 1800-22-1070 (24×7 service). Customers can also visit their nearest branch with applicable documents and booking amount.
IDBI Naman Senior Citizen Deposit Interest Rates
Senior citizens will get an interest rate of 7.50% on Naman Senior Citizen Fixed Deposits maturing in 1 Year to 2 Years (excluding 444 Days & 700 Days) and an interest rate of 7.25% on Naman Senior Citizen Fixed Deposits maturing in 2 Years to 3 Years. Deposits made by senior citizens that mature in 3–7 years will earn an interest rate of 7.00%. Senior Citizens at IDBI Bank will continue to get an additional 0.5% interest on deposits for other regular tenors.
IDBI Bank announced a rise in the interest rate on fixed deposits and savings accounts on February 13, 2023. On the other hand, the “Amrit Mahotsav FD” programme of 444 days and 700 days was introduced by IDBI Bank beginning on February 13, 2023. While IDBI Bank gives an interest rate of 7.15 percent for the general public and 7.90 percent for senior citizens on a special maturity bucket of 444 days, it offers an interest rate of 7.2 percent for non-senior citizens and 8.0 percent for elderly individuals on a special maturity bucket of 700 days.