HDFC Bank Extends Senior Citizen Care FD Scheme: Earn Higher Interest Rates till November 2023

Rajesh
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HDFC Bank, India's largest private sector lender, has announced the extension of its special term deposit scheme called "Senior Citizen Care FD." Designed exclusively for elderly individuals, this scheme offers higher interest rates. Initially introduced on May 18, 2020, the HDFC Senior Citizen Care FD was set to expire on July 7, 2023. However, in an effort to attract more customers, HDFC Bank has extended the program until November 7, 2023.

HDFC Bank Extends Senior Citizen Care FD Scheme

The HDFC Senior Citizen Care FD comes with a fixed tenure ranging from 5 years 1 day to 10 years, and it allows senior citizens to make deposits of less than Rs 5 Crores. As part of this scheme, HDFC Bank offers an additional 0.25% premium on top of the existing premium of 0.50% to senior citizens. This translates to a total additional benefit of a 0.75% higher interest rate. For the tenure of 5 years 1 day to 10 years, HDFC Bank provides a standard interest rate of 7%. However, senior citizens will enjoy a return of 7.75%, which is 75 basis points higher than the interest rate applicable to the general public.

According to HDFC Bank, "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 the special deposit offer commencing from 18th May'20 to November 7, 2023. This special offer will be applicable to new Fixed Deposit bookings as well as renewals made by Senior Citizens during the above period. This offer is not applicable to Non-Resident Indians."

In the event of premature closure, including partial closure or sweep-in, of the 'Senior Citizen Care FD' after the five-year term, a penalty rate of 1.25% applies. If the closure occurs on or before the 5-year tenure, the penalty rate is one percent.

HDFC Bank has also made an important announcement on its website regarding the exemption from penalty applicable on premature withdrawal of fixed deposits for Central or State Government establishments such as Apex Bodies, Union Government, State Government, Union Territories Government, Legislature, Judiciary, Embassies, Missions, Panchayat, District, Local Body, and certain other entities that are 100% government-owned. This exemption will be effective for deposits booked or renewed on or after July 1, 2023. Customers interested in availing this facility are requested to visit their nearest branch before booking or renewing their deposit and submit a request letter along with the required documents, if applicable.

Effective from May 29, 2023, HDFC Bank's latest FD rates range from 3% to 7% for the general public and from 3.50% to 7.75% for senior citizens, across tenures ranging from 7 days to 10 years. It's important to note that the interest income from all fixed deposits (FDs) with HDFC Bank is subject to Tax Deducted at Source (TDS). TDS will only be deducted by the bank if the interest income from all of a customer's FDs exceeds Rs. 40,000 for non-senior citizens and Rs. 50,000 for senior citizens in a financial year, as per the provisions of the Income Tax Act of 1961.

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