HDFC Bank Ending Special FD For Senior Citizens This Week: Details Inside

On May 18, 2020, HDFC Bank, the largest private sector lender in India, launched a special fixed deposit (FD) scheme for senior citizens offering higher interest rate benefits. However, after multiple extensions, HDFC Bank is now finally going to end its special term deposit scheme "Senior Citizen Care FD" this week. The scheme will expire on July 7, 2023, and elderly residents will no longer be able to benefit from an additional 0.75% interest rate on their term deposits after that date, according to the bank's official website.

HDFC Bank Senior Citizen Care FD comes with a pre-determined tenure of 5 years to 10 years, and under this scheme, HDFC Bank is offering an additional Premium of 0.25% over and above the existing premium of 0.50% on fixed deposits of less than 5 crores booked by senior citizens. Hence, their total benefit on the said tenure goes up to 0.75% turning into an interest rate of 7.75% which is 75 bps higher than the standard rate of 7%.

"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 special deposit offer commencing from 18th May'20 to July 7, 2023. This special offer will be applicable to new Fixed Deposit booked as well as for the Renewals, by Senior Citizens during the above period. This offer is not applicable to Non-Resident Indian," mentioned HDFC Bank on its website.

If a Senior Citizen Care FD is prematurely closed on or before the five-year tenure, the penalty rate is 1%, and if the scheme is prematurely closed (including partial closure or sweep-in) after the five-year period, the penalty rate is 1.25%. According to HDFC Bank website, these penalty rates will be imposed "below that of the lower of either a) the contracted rate or b) the base rate applicable for the period the deposit has remained with the bank."

HDFC Bank last revised its interest rates on 29th May 2023. Following the revision the bank is offering interest rates ranging from 3.00% to 7.00% for the general public and 3.50% to 7.75% for senior citizens on tenors of 7 days to 10 years. On a tenure of 4 years 7 months - 55 months, HDFC Bank is now offering a maximum interest rate of 7.25%.

With the completion of its merger with its parent company, HDFC, HDFC Bank has earned a spot among the world's top 10 banks by market capitalization. On June 30, the $40 billion merger deal-the largest in India's corporate history-closed. As a result of the merger, HDFC Bank Ltd. and Housing Development Finance Corp. currently rank fourth in the equity market capitalization globally, with a valuation of around $172 billion, according to a report by Bloomberg.