Extension of the special HDFC Bank fixed deposit system for seniors

The special fixed deposit program for the elderly, private sector lender, HDFC Bank, has been extended for the third time. The bank offers a special fixed deposit (FD) system for the elderly called the Senior Citizen Care FD program. The bank grants higher interest rates on these special FDs for the elderly. The FD special offer for seniors was made available for investment from May 18, 2020 in a context of falling interest rates during the coronavirus pandemic.

HDFC Bank Senior Citizen Care FD interest rate

HDFC Bank offers a 75 basis points (bps) higher interest rate on these deposits. If an elderly person places a fixed deposit in HDFC Bank Senior Citizen Care FD, then the interest rate applicable to the FD will be 6.25%. These rates are applicable from November 13, 2020.

“An additional premium of 0.25% (on top of the existing premium of 0.50%) will be granted to seniors who wish to reserve the fixed deposit at less than 5 crore for a period of 5 years a day to 10 years, during a special deposit offer starting from May 18, 20 to June 30, 21, ”the HDFC bank said on its website.

In the event of premature closure of the FD booked as part of the HDFC Bank Senior Citizen Care FD program offer (including a sweep / partial closure) after 5 years, the interest rate will be 1.25% lower than the rate contracted or at the base rate applicable for the period the deposit remained with the bank, whichever is lower. In the event of premature closing of the term deposit reserved in the above offer (including a sweep / partial closure) before 5 years, the interest rate will be 1.00% lower than the contracted rate or the base rate. applicable for the period during which the deposit remained with the bank, whichever is lower.

Latest FD Interest Rates From HDFC Bank

HDFC Bank offers an interest rate of 2.50% on deposits between 7 days and 29 days and 3% on deposits maturing 30-90 days. Over 91 days to 6 months, 3.5% and over 6 months 1 day to less than one year, 4.4%. The bank gives 4.9% on FDs maturing in one year. Term deposits maturing in one and two years will earn an interest rate of 4.9%. DFs maturing in 2 years to 3 years will give 5.15%, 3 years to 5 years will give 5.30%. Deposits with a term of 5 years to 10 years will pay an interest of 5.50%. These prices are effective from November 13th.

Previously, the State Bank of India (SBI) extended the scheme until June 30, 2021. Currently, SBI gives an interest rate of 5.4% over five years FD to the general public. If an elderly person makes a fixed deposit under the special FD regime, the interest rate applicable to the FD will be 6.20%.

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