HDFC Bank Extends Senior Citizen Care FD Scheme Till November 2023

India's largest private sector lender HDFC Bank has extended its special term deposit scheme "Senior Citizen Care FD". As the name implies, the scheme is solely designed for elderly individuals, and on May 18, 2020, the bank introduced the scheme to provide them access to higher interest rates. The HDFC Senior Citizen Care FD had been slated to expire on July 7, 2023, however, HDFC Bank has once again extended the programme until November 7, 2023, in an effort to pique customers' attention.

HDFC Senior Citizen Care FD comes with a fixed tenure of 5 years 1 day to 10 years, and senior citizens can make deposits of less than Rs 5 Cr. Through the scheme, HDFC Bank promises an additional 0.25% premium over and above the existing premium of 0.50% to senior citizens, which implies that senior citizens will get a total additional benefit of 0.75% higher interest rate. On the above-said tenure of 5 years 1 day to 10 years, HDFC Bank provides a standard interest rate of 7% however, senior citizens will get a return of 7.75% which is 75 bps higher than the interest rate applicable for the general public.

"An Additional Premium of 0.25% (over and above the existing premium of 0.50%) shall be given to Senior Citizens who wish to book the Fixed Deposit less than 5 crores for a tenure of 5 (five) years One Day to 10 Years, during special deposit offer commencing from 18th May'20 to November 7, 2023. This special offer will be applicable to new Fixed Deposit booked as well as for the Renewals, by Senior Citizens during the above period. This offer is not applicable to Non-Resident Indian," mentioned HDFC Bank on its website.
The penalty rate is 1.25 per cent if a 'Senior Citizen Care FD' is prematurely closed after the five-year term (including partial closure or sweep-in), and it is one per cent if the closure occurs on or before 5 years tenure.

HDFC Bank has also made an important announcement by mentioning on its website that "Central or State Government establishments such as Apex Bodies, Union Government, State Government, Union Territories Government, Legislature, Judiciary, Embassies, Missions, Panchayat, District, Local Body and certain other entities which are 100% owned by Government shall be eligible for exemption from penalty applicable on premature withdrawal of Fixed deposits for Deposits booked/renewed on or after 1st July'23. Customers who wish to avail this facility on new booking or renewal, are requested to visit nearest Branch prior to new booking or date of renewal of deposit with request letter and requisite documents (if required)."

HDFC Bank's latest FD rates are effective from 29th May, 2023. On tenure ranging from 7 days to 10 years, the general public will get interest rates starting from 3% to 7% and senior citizens can earn from 3.50% to 7.75%. Your interest income from all fixed deposits (FD) of HDFC Bank is subject to TDS (Tax Deducted at Source). The bank will only deduct TDS from your interest income collected from all of your FDs if it exceeds a threshold of Rs. 40,000 for non-senior citizens and Rs. 50,000 for senior people in a financial year, according to the Income Tax Act of 1961.