HDFC Bank launches special FD scheme for senior citizens: Here's all you need to know

After the State Bank of India (SBI) launched a special fixed deposit (FD) scheme for senior citizens, private sector lender, HDFC Bank too has launched an FD scheme for seniors called 'Senior Citizen Care FD'. According to HDFC Bank's website, the bank is offering an additional 75 basis points (bps) for deposits with more than 5-year tenors with investments up to Rs 5 crore. Those who want to invest in the scheme can do so between May 18, 2020 and September 30, 2020.

The bank's website also states that seniors will get an additional premium of 0.25 per cent (over and above the existing premium of 0.50 per cent). So, at present, for deposits less than Rs 2 crore with a tenor of 5 years 1 day to 10 years, the interest rate for non-seniors is 5.75 per cent and for senior citizens it is 6.5 per cent a year.

Here are the key highlights of the scheme as per the HDFC Bank website:

• The Senior Citizens Care FD scheme is applicable to new FD deposits booked as well as for the renewals, by senior citizens during the above period. This offer is not applicable to Non-Resident Indian.
• In case of premature closure of Fixed Deposit booked in the above offer (including sweep in / partial closure) prior to 5 years, the interest rate will be 1.00% 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 Fixed Deposit booked in the above offer (including sweep in / partial closure) post 5 years, the interest rate will be 1.25% below the contracted rate or the base rate applicable for the period the deposit has remained with the bank, whichever is lower.

Apart from this, HDFC Bank has also revised fixed deposits interest rates with effect from May 18, 2020. According to its website, various tenored FDs will now earn interest rates in the range of 3 per cent to 5.75 per cent a year and senior citizens will earn 3.5 per cent to 6.5 per cent. The following rates are applicable for deposits made less than Rs 2 crore.

SBI's senior citizen FD
SBI's senior citizens FD, SBI WECARE Senior Citizens Term Deposit scheme is available for investment from May 12, 2020. According to the bank, the scheme has been launched to provide a higher interest rate to senior citizens in the current falling interest rate scenario as this category of investors are usually dependent on interest income. The scheme will fetch 0.8 per cent above the interest rate applicable to the general public.

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