The private sector giant HDFC Bank has extended its special fixed deposit scheme for senior citizens. Senior Citizen Care FD is a special-fixed deposit programme offered by HDFC Bank since May 18, 2020, with a higher interest rate benefit for senior citizens. However, due to the Covid-19 pandemic and the low-interest rate regime, the scheme was repeatedly extended and was set to expire on September 30, 2022, but amid the rising interest rates, HDFC Bank further extended the special fixed deposit scheme until March 31, 2023, which is excellent news for them.
HDFC Bank has mentioned on its website that “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 31st Mar’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.”
On fixed deposits maturing in 5 years 1 day – 10 years, HDFC Bank offers a regular interest rate of 5.75%, but senior citizens will get an interest rate of 6.50% which is an addition of 75 bps over and above the regular rate under the Senior Citizen Care FD of the bank. This is the benefit of the bank’s special fixed deposit scheme for senior citizens, which they can book on or before March 2023.
HDFC Bank has stated on its website on the premature withdrawals from Senior Citizen Care FD that “In case of premature closure of Fixed Deposit booked in the above offer (including sweep in / partial closure) on or before 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.”
This declaration is consistent with the RBI’s 50 basis point increase in the repo rate to 5.9%. However, in addition to HDFC Bank, IDBI Bank and SBI recently extended the validity of their special fixed deposit schemes for older residents. The Naman Senior Citizen Deposit from IDBI Bank gives resident senior citizens an added interest rate of 0.25% over and above the existing additional rate of 0.50% each year, resulting in a total benefit of 0.75% above the card rate on deposits maturing in 1 year to 10 years. This IDBI Bank special fixed deposit was scheduled to expire on September 30, 2022, but the bank has now extended it through October 31, 2022.
The Wecare Deposit scheme for older adults has been extended by SBI to March 2023. SBI gives elderly individuals an additional premium of 30 bps over and above the regular 50 bps on their retail TD booked for “5 Years and Above” tenor exclusively under its special fixed deposit scheme.
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