New Fixed Deposit Schemes offered by HDFC Bank for senior citizens

  • In the current scenario of a falling rate of interest, major lenders have introduced special investment schemes to protect the income of senior citizens.
  • Following the State Bank of India’s special FD scheme for senior citizens, the private sector bank, HDFC bank has also launched a Fixed Deposit scheme for senior citizens called ‘Senior Citizen Care FD’. Check HDFC FD Interest Rates for regular and senior citizen

What is the interest rate offered?

  • According to the notification issued, the bank is offering an additional 75 basis points (bps) for those term deposits that have a tenure of more than 5 years with investments are up to ₹ 5 crores.
  • Senior citizens will get the benefit of an additional premium of 0.25% (above the existing 0.50 % premium). It means for the deposit investments that are less than ₹ 2 crores with a term of 5 years 1 day to 10 years.
  • The interest rate offered for the general public is 5.75%, and senior citizens are offered 6.5% annually.

What is the time period for the special HDFC deposit scheme?

Senior citizens who want a safe and secure investment can open the fixed deposit investment from May 18, 2020, until September 30, 2020.

Who are eligible for this special fixed deposit scheme?

  • It is available for Senior citizens who are Indian residents. It’s not applicable for Non-Resident Indians.
  • The age of the investor must be 60 years or above to avail the benefits.

What happens if you withdraw prematurely?

  • If you close or withdraw the fixed deposit investment prematurely (sweep in / partial closure), i.e. before 5 years, the rate of interest offered will go down 1.00% than the contacted or base rate which is applicable for the deposit period that is remained with the bank, whichever is lower.
  • Suppose the fixed deposit investment is withdrawn prematurely (sweep in or partial closure) post the 5 years. In that case, the rate of interest offered will go down 1.25% than the contracted or base rate, which is applicable for the deposit period that is remained with the bank, whichever is lower.

How will the interest be paid?

  • As per the notification issued by HDFC Bank, the interest earned under the HDFC’s special FD scheme for senior citizens will be paid monthly/quarterly or on maturity. The interest, net TDS will get credited directly in the customer’s account.
  • If the interest earned goes beyond ₹50,000 in a financial year, the TDS will be deducted.

Is Overdraft facility available under this new scheme?

Yes, the bank offers overdraft facility under this special fixed deposit scheme. Senior citizens can also take loan against their term deposit investment.

What are the main features of the Senior Citizen Care FD scheme?

  • The special FD scheme for senior citizens is available for fresh deposits and renewals.
  • Besides, the HDFC bank also revised the interest rates for term deposits that will be effective from May 18, 2020.
  • According to the notification issued by the HDFC bank, the FDs with various terms will earn interest ranging from 3% to 5.75% annually, and the senior citizens will get 3.5% to 6.5%. These interest rates are only applicable to the deposits that are less than ₹ 2 crores.

To know the interest rates and other information about various HDFC fixed deposit schemes.

Conclusion: In the regime of falling interest rates, HDFC’s special FD scheme for senior citizens offer attractive and high returns. The scheme, also known as Senior Citizen Care FD’ is a safe and secure investment option. The senior citizens who wish to invest in fixed-income investments must consider their risk appetite, available liquidity and the tax slab before making any investment decision. Visit your nearest HDFC branch to start your investment today.