In a recent development, HDFC Bank, one of India’s leading financial institutions, has announced the discontinuation of its Senior Citizen Care Fixed Deposit scheme, offering the highest interest rate. This decision has left potential investors with limited time to benefit from this high-yielding option.
The Senior Citizen Care FD, a flagship offering of HDFC Bank, is scheduled to be terminated on November 7, 2023. Launched in May 2020, this fixed deposit scheme has been a popular choice for senior citizens seeking substantial returns on their investments.
One of the primary reasons for the popularity of the Senior Citizen Care FD is its attractive interest rates. Senior citizens typically receive an additional 0.25% interest over the standard rate of 0.50%. This additional interest is applicable to fixed deposits with tenures ranging from 5 years to 10 years. Currently, HDFC Bank is offering a competitive 7.75% interest rate on senior citizen FDs.
However, it’s essential to note that only Indian citizens can invest in the Senior Citizen Care FD, as NRI investors are not eligible to participate in this scheme.
HDFC Bank’s Senior Citizen FD Interest Rates:
1. 7 days to 29 days – 3.50%
2. 30 days to 45 days – 4.00%
3. 46 days to 6 months – 5.00%
4. 6 months one day to 9 months – 6.25%
5. 9 months to less than a year – 6.50%
6. One year to less than 15 months – 7.10%
7. 15 months to less than 18 months – 7.60%
8. 18 months to two years, less than 11 months – 7.50%
9. More than 2 years, 11 months to 35 months – 7.65%
10. 2 years 11 months to less than 4 years 7 months – 7.50%
11. 4 years 7 months to 55 months – 7.70%
12. 5 years – up to 10 years – 7.75%
It’s important to understand that investors in the Senior Citizen Care FD have the flexibility to withdraw their funds before the maturity date. However, this option is only available for FDs with a tenure of 5 years. Withdrawing money from FDs with shorter durations is not permissible, and a reduced interest rate of 1.25% is applicable if an early withdrawal is made.
Given the impending discontinuation of this high-yield FD scheme, prospective investors looking for substantial returns are advised to act promptly if they wish to take advantage of HDFC Bank’s Senior Citizen Care FD. The closure of this scheme underscores the importance of staying informed about financial institutions’ offerings and seizing opportunities when they arise.
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