Private sector lender HDFC Bank has launched special fixed deposit (FD) scheme for senior citizens called Senior Citizen Care FD scheme. The bank is offering higher interest rates on these special FDs for senior citizens. The best part of this offer is that senior citizens will get additional 75 basis points (bps) for deposits with more than 5-year tenor. The special FD offer for senior citizens has been made available for investment from 18 May 2020, HDFC Bank noted.
HDFC Bank special FD scheme for senior citizens from tomorrow: 5 things to know:
1) HDFC Bank Senior Citizen Care FD scheme will be applicable to new fixed deposit booked as well as for the renewals, by senior citizens.
2) HDFC Bank special FD scheme for senior citizens would be in effect up to 30 September.
3) For fixed deposits of over five years but under ten years, HDFC Bank will be paying an additional interest of 75 bps, the lender said.
4) If a senior citizen puts a fixed deposit under HDFC Bank Senior Citizen Care FD, then interest rate applicable to the FD will be 6.50% . Under this new product, an additional 25 bps premium will be payable for senior citizens' retail term deposits with "5 years 1 Day & above" tenure only.
5) In case of premature closure of FD booked under HDFC Bank Senior Citizen Care FD scheme offer (including sweep in / partial closure) post 5 years, the interest rate will be 1.25% below the contracted rate or the base rate applicable for the period the deposit has remained with the bank, whichever is lower. In case of premature closure of term deposit booked in the above offer (including sweep in / partial closure) prior to 5 years, the interest rate will be 1.00% below the contracted rate or the base rate applicable for the period the deposit has remained with the bank, whichever is lower.
HDFC Bank latest FD interest rates
HDFC Bank revised its FD rates effective 18 May. After the latest revision, the bank gives interest rate ranging from 3% to 5.75% to general customers and 3,5% to 6.50%* to senior citizens on deposits maturing in 7 days to 10 years.
SBI special FD scheme for senior citizens
A few days ago, SBI, the largest lender in the country, had also launched a similar offering to help senior citizens despite a heavy accretion in deposits when loan demand has gone down. Known as SBI Wecare Deposit, the scheme provides an additional 30 basis points (bps) interest to senior citizens on their FDs. Senior citizens opting for SBI Wecare Deposit FD will get an interest rate of 6.50% on scheme.