This week, HDFC Bank launched a special fixed deposit (FD) scheme for senior citizens called Senior Citizen Care FD scheme that offers higher interest rates.
Banks, including SBI, are looking to give lucrative options to senior citizens in the country whose retirement incomes are largely dependent on secure FD interest they earn on their life savings, amid falling interest rates due to COVID-19.
Along with the launch of the scheme for customers over 60 years of age, the private lender also revised its FD interest rates on deposits maturing in 7 days to 10 years with effect from 18 May 2020. It is now offering 3 to 5.75 percent interest to general customers and 3.5 to 6.5 percent to senior citizens.
Features of HDFC Bank's Senior Citizen Care FD scheme:
- Senior citizens will get additional 75 basis points (0.75%) interest on retail deposits with with "5 years 1 Day & above" tenure only.
- The offer has been made available for investment from 18 May 2020.
- The additional interest rate scheme will be applicable to new fixed deposits booked as well as for the renewals.
- The special FD scheme for senior citizens will be open only till 30 September 2020.
- For fixed deposits of over five years but under ten years, HDFC Bank will be paying an additional interest of 75 bps (0.75 percent).
- Under HDFC Bank Senior Citizen Care FD, then interest rate applicable will be 6.50 percent.
- In case of premature closure of FD booked under HDFC Bank Senior Citizen Care FD scheme offer (including a sweep in / partial closure) post 5 years, the interest rate will be 1.25 percent 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 percent below the contracted rate or the base rate applicable for the period the deposit has remained with the bank, whichever is lower.