HDFC Bank has announced an extension of its exclusive fixed deposit scheme for senior citizens, named the ‘Senior Citizen Care FD’.
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The scheme was launched in May 2020 and it is now accessible until January 10, 2024. This extension provides senior citizens with an opportunity to benefit from higher interest rates on their fixed deposits.
According to The Economic Times report, under the Senior Citizen Care FD, senior citizen investors are offered an additional interest rate of 0.25 percent, which is over and above the existing premium of 0.50 percent typically provided to senior depositors. This means that, under this special scheme, senior citizens will receive a total interest premium of 0.75 percent more than regular clients.
The report added that the bank currently offers a 7.75 percent interest rate under this scheme, compared to the regular senior citizen fixed deposit rate of 7.50 percent for a tenure of 5 years.
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It’s important to note that this rate is applicable to fixed deposits of less than 5 crores, with a tenure ranging from 5 years and one day to 10 years.
In terms of premature withdrawal, the HDFC Bank’s policy for the Senior Citizen Care FD is quite specific. If a fixed deposit booked under this offer is prematurely closed post 5 years, including instances of sweep-in or partial closure, the interest rate applied will be 1.25 percent lower than the rate initially offered on the deposit’s booking date. This adjusted rate applies to the actual period the deposit remained with the bank, not the initially contracted rate.
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Overall, HDFC Bank’s senior citizen FD rates vary from 3.50 percent to 7.75 percent, covering a wide range of tenures from 7 days up to 10 years.
