HDFC Bank is offering a rate of interest of 7.75 per cent on ‘Senior Citizen Care FD’, which is senior citizen FD for a tenure of five years one day to 10 years.

The rate of interest being offered to senior citizens (aged 60 years and above) on this fixed deposit (FD) is 75 basis points higher than that available to the general public. Typically, the rate of interest for seniors is 50 basis points or 0.50 per cent higher than the rate applicable to non-seniors. However, HDFC Bank is now offering senior citizens a premium of 0.25 per cent above the 0.50 per cent extra that is usually available to them. For non-seniors, the rate of interest is 7 per cent.

The last date to apply for this fixed deposit is tomorrow, July 7, 2023, according to information on the HDFC Bank website.

The FD was first launched in May 2020 and has been extended multiple times since then. Any FD that is being renewed or even a new FD booked before the expiry of the deadline will fetch a higher rate of interest.

However, only resident Indians can avail of this offer. It is not available to non-resident Indians.

This FD also allows for premature withdrawal with some penalty. There are different penalties if withdrawn before five years (the minimum FD period) and after five years.

Here are the details:

Premature Withdrawal Before 5 Years

In case of premature withdrawal or closure on or before five years, the rate of the interest rate applicable on the FD will be 1 per cent below the applicable deposit rate.

The applicable rate of interest considered for this purpose will be the lower of the contract rate of FD, or the rate applicable for the period the FD was active with the bank.

Premature Withdrawal After 5 Years

When the withdrawal is done after five years, the penalty will be 1.25 per cent. It means that the rate of interest paid will be 1.25 per cent below the applicable rate. The rate of interest considered for this purpose will be the same as mentioned above (lower of these two: the contract rate and the period for which the FD remained with the bank).

How To Book The FD

One can either visit the bank branch use the bank’s Netbanking facility or book it on the bank’s mobile App.

There are other FDs also on offer from the bank for senior citizens. They can also avail of a deposit rate of 7.75 per cent on FDs with a tenure of 4 years seven months to 55 months. There is no last date for investing in this FD.

HDFC Bank last revised its rates on May 29, 2023, and is offering a rate of interest from 3.50-7.75 per cent rate to seniors on deposits with tenures ranging from seven days to up to 10 years.

The deposit rate is 7.50 per cent and above for tenure of 15 months and above.