HDFC Bank Ltd has launched a special fixed deposit (FD) scheme called as “Senior Citizen Care FD Scheme” effective from May 18 2020 for a limited edition. The scheme offers a premium of 25 bps over and above the existing 50 bps premium on senior citizen FD schemes.
The new FD scheme for senior citizens offers a total premium of 75 bps to senior citizens up till September 30, 2020 on 5 year to 10 year fixed deposit schemes (of less than Rs 5 crores). The bank has revised fixed deposits rates across the tenors and the new interest rates range from 3% to 5.75% for general customers. While for senior citizen the new rates will vary from 3.5% to 6.50%*.
The special offer is valid on new FD bookings as well as Renewals effectuated by Senior Citizens between May 18 to Sep 30, 2020. The offer is not available to Non-Resident Indians.
The bank has also noted that, premature closure of deposits booked under the above scheme (sweep in or partial closure) before 5 years, will recede the interest rate by 1.00% from the contracted rate or the base rate applicable, whichever is lower. Likewise, in case of premature closure of the account post 5 years will lead to reduction of 1.25% interest rate of the contracted rate or the base rate for the applicable period.
There are no other special terms and condition with the product. All terms as applicable to other Fixed Deposit are applicable to the new deposit scheme too.
Amid current market situations owing to COVID 19 disruptions, bank FD rates are going southwards. Just a few days ago, the state bank of India had also announced the FD rates revision along with a special SBI FD scheme for senior citizens– SBI Wecare Deposit scheme. It offers 30 basis points (bps) in addition to 50 bps seniors premium. The SBI Wecare Deposit FD scheme offers 6.50% on 5 year fixed desposits.