ICICI Bank offers higher interest rate to senior citizens

Private lender ICICI Bank on Thursday announced a fixed deposit product with an enhanced interest rate offering of 0.80 percentage point for senior citizens.

Earlier, banks used to give an additional interest of 0.50 per cent to senior citizens.

With a sharp decrease in interest rates since the beginning of the pandemic, lenders starting with SBI and then HDFC Bank have enhanced the premium paid to elder people.

Senior citizens depositing with ICICI Bank will be earning 6.55 per cent per annum for deposits of under Rs 2 crore for a tenor between 5-10 years, the bank said in a statement.

The product is available only till September 30, it said.

“We know that FD interest is a key source of income for a large section of senior citizens. Keeping this in mind, we are offering higher interest rates to them through the new scheme, even in the declining interest rate regime, as a mark of our respect to them,” Pranav Mishra, who heads the liabilities group, said.