Amid COVID19 pandemic, HDFC Bank has announced a special fixed deposit offer for senior citizens called, the ‘Senior Citizen Care FD’.
The special fixed deposit offer for senior citizens has been made available for investment from May 18.
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The newly-launched HDFC Bank special fixed deposit has been offered to only resident senior citizens, aged 60 years and above.
HDFC Bank officials claimed the scheme has been introduced to protect the income of senior citizens by providing additional interest on their fixed deposits.
A fixed deposit investment under ‘Senior Citizen Care FD’ can be made for a minimum of five years and one day and a maximum of 10 years, the HDFC officials informed.
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HDFC Bank Senior Citizen Care FD offer for senior citizens will fetch 75 basis points (bps) interest rate above the rate applicable to the general customers.
The bank has cut the interest rates on term deposits with effect from May 15.
After the latest revision, HDFC Bank gives 5.75 per cent interest rate on five years fixed deposits for the general customers.
And if a senior citizen puts a fixed deposit under the Senior Citizen Care FD, then interest rate applicable to the fixed deposit will be 6.50 per cent.
Under this new product, an additional 25 bps premium will be payable for senior citizens’ retail term deposits with five years and one day and above tenure only.
Interest on fixed deposits under this special FD offer for senior citizens will be paid monthly/quarterly or on maturity.
As per HDFC Banks’ website, interest, net of TDS, shall be credited to customer account.
For senior citizens, TDS will be deducted if the total interest in a financial year exceeds Rs 50,000.
A senior citizen can also take an overdraft against the special fixed deposits.