In an effort to support senior citizens, HDFC, the country’s largest private bank, has once again extended its Special Fixed Deposit (Special FD) scheme.
This means that senior citizens can continue to invest in these special FDs.
Originally introduced in May 2020 during the COVID-19 pandemic, the bank has now extended the deadline for investing in the Senior Citizen Care FD until November 7, 2023.
Additional Interest for Senior Citizens
HDFC Bank provides an additional interest rate of 0.25% to customers falling under the senior citizen category.
Moreover, for FDs ranging from five years one day to 10 years, there is a premium of 0.50 percent.
This attractive interest rate is applicable for investments below five crore rupees.
Senior Citizen Care FD holders will enjoy an interest rate of 7.75% for a period of five to 10 years.
Furthermore, the interest rate for deposits between seven and 10 years ranges from 3.35% to 7.75%.
Making Fixed Deposits More Appealing
To make their FD schemes more attractive, HDFC Bank has extended the special fixed deposit offer for senior citizens until September 30, 2023.
the previous financial year, the Reserve Bank of India consistently raised the repo rate, prompting banks to increase their interest rates.
However, in the current financial year, the repo rate has remained unchanged.
The repo rate is the rate at which the Reserve Bank lends to other banks.
Interest Calculation and Launch of the FD Scheme
HDFC Bank calculates interest based on the actual number of days in a year, considering leap and non-leap years.
If the deposit falls within a leap year, interest is calculated based on the number of days in that year (366), while in a non-leap year, it is calculated based on 365 days.
In May, HDFC Bank introduced two special fixed deposit schemes for a limited period, offering plans with durations of 35 months and 55 months.
