6.55% ICICI Bank Golden Years FD for Senior Citizens – Are there any better alternatives?

ICICI Bank Golden Years FD for Senior Citizens – Should you investICICI Bank Golden Years FD for Senior Citizens Review

Two days back, ICICI Bank has launched a new fixed deposit scheme with the name “ICICI Bank Golden Years Fixed Deposit” for senior citizens. ICICI Bank indicated that they have launched this new FD scheme to help Sr. Citizens during the fluctuating interest rate regime. Recently HDFC Bank and SBI also launched a special FD scheme for Sr. Citizens offering special interest rates. In this article we would provide ICICI Bank Golden Years Fixed Deposit Scheme issue details, interest rates and any hidden factors in it.

Also Read: SBI Wecare FD Scheme for Senior Citizens – How good is this FD?

ICICI Bank Golden Years Fixed Deposit Scheme – Issue Details

ICICI Bank has launched this Fixed Deposit scheme indicating that senior citizens are always worried about falling interest rates and this scheme would help them to get better interest rates.

ICICI Bank Golden Years FD Scheme is open from 20th May, 2020.

ICICI Bank Golden Years FD scheme would close by 30th September, 2020.

This FD Scheme is for Senior Citizens above 60 years of age.

Senior Citizens would get 30 basis points (0.3%) premium interest rates over and above regular interest rates for senior citizens.

Currently Senior Citizens are getting 0.5% higher interest rates compared to others. In this scheme they would get 0.8% higher compared to regular investors. (0.5% senior citizen category and 0.3% premium offered in this special FD).

ICICI Bank Golden Years FD Scheme interest rate is 6.55% now (5.75% for regular investors + 0.5% extra for Sr. Citizens + 0.3% premium rates for this special FD).

Senior Citizens need to do this FD for 5+ years to get this premium interest rate. They can invest for 5-10 year tenure.

This new FD scheme is applicable for all fresh FD’s as well as renewal FDs. It is not applicable for existing FDs that are running.

One can take a loan up to 90% of the FD amount + on accrued interest. One has to pay higher interest rate on such loan.

One can apply credit card on Golden years FD scheme.

Premature withdrawals allowed, but terms and conditions would apply.

You may like: Bajaj Finance FD Offers upto 7.85% Yield in 2020

Reasons to invest in ICICI Bank Golden Years FD Scheme

Here are some key reasons to invest this FD scheme.

1) The ICICI Bank Golden Years FD Scheme offers 0.8% higher rates for senior citizens compared to regular investors. Other banks are offering only up to 0.5% higher rates to senior citizens compared to others.

2) ICICI Bank is the largest private sector bank, hence it is relatively safe to invest in such large banks.

3) Bank FDs can be prematurely withdrawn and one can get them on the same day. This applies to all FD schemes and not just to ICICI Bank.

4) One can invest up to Rs 2 crores in this scheme and enjoy higher interest rates.

Negative Factors in this FD Scheme

Here are some negative factors in this FD Scheme.

1) This FD scheme offers the lowest interest rates compared to other saving schemes like Senior Citizen Saving Scheme (SCSS).

2) You need to invest in this FD scheme for atleast for 5 year 1 day.

3) If you want to do premature withdrawal, you need to forego premium interest rates what you are getting in this Golden Years FD scheme of ICICI Bank.

4) Generally 5 years FD schemes would get income tax benefits u/s 80c. However, tax benefits not available in this special FD scheme from ICICI Bank.

Is Premature withdrawals allowed in this special FD scheme from ICICI Bank?

Here are premature withdrawal guidelines if withdrawn before maturity period.

i) 0.5% penal rate if withdrawn within 1 year

ii) 1% penal rate if withdrawn between 1 year – 5 year 1 day

iii) 1.3% penal rate if withdrawn after 5 years 1 day but before maturity of the FD.

ICICI Bank Golden Years FD Scheme – Is this the best FD scheme for Senior Citizens or any alternatives?

While ICICI Bank Golden Years FD interest rates are higher by 0.3% compared to the other FD scheme offered for Senior citizens, there are other best alternatives.

1) SCSS: Senior Citizen Saving Scheme (SCSS) from the post office and banks now offer 7.4% per annum interest rates. Interest is computed quarterly and paid every quarter. ICICI Bank Golden Years FD Scheme interest rates are 6.55%, which is lower than SCSS. Hence SCSS Scores high. One can invest a maximum of Rs 15 Lakhs in SCSS. One should first opt for SCSS and then look for other investment options.

2) GOI Savings Bonds: GOI Savings Bonds in 2020 are another alternative option. It has 7 year maturity period and offer 7.75% interest rates. One can invest as low as Rs 1,000 and it is zero risk as these are issued by the Government. One can get half yearly interest or interest on maturity by investing in this FD scheme. If Senior Citizens think they have sufficient money for any emergency and beyond that they have surplus money which they want to invest for 7 years tenure and expect safe returns, they can opt for these government bonds.

3) PO MIS Scheme: Post Office MIS Scheme offers 6.6% interest rates and it has 5 year maturity period. Senior Citizens can invest Rs 4.5 Lakhs in individual status and Rs 9 Lakhs in joint account stats and get higher interest rates compared to ICICI Bank special Golden Years FD scheme.

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Suresh KP

ICICI Bank Golden Years Fixed Deposit Scheme for Senior Citizens

Suresh KP


  1. There are RBI sovereign bonds available for senior citizens which give 6.55% per annually on cumulative basis if money is locked for 5 years.

  2. Sir GOI bond 7.75% seems to be dropped. Request to check sir. I tried investing on 30th but couldn’t find it on bonds list. Please guide

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