HDFC Bank has extended the last date for its Senior Citizens’ Fixed Deposit (FD) scheme until May 2, 2024. The bank provides 0.50 per cent extra on all FDs to senior citizens except for the Senior Citizens’ FD scheme, which offers 0.25 per cent more, bringing the total to 0.75 per cent.

According to the bank’s website, “An additional premium of 0.25 per cent (over and above 0.50 per cent) shall be given to senior citizens who wish to book FD (of) less than five crores for five years one day to 10 years during special offer commencing May 18, 2020, to May 2, 2024.”

It launched the senior citizen FD scheme on May 18, 2020. The scheme was expected to close on April 15, 2024, and then extend until May 2, 2024.

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FD Tenure:

The tenure of the Senior Citizens’ Fixed Deposit (FD) scheme is five years, one day to 10 years.

Interest Rate: 

The interest rate is 7.75 per cent for senior citizens and 7.00 for the general public. Bank rates typically move up or down based on the Reserve Bank of India’s (RBI) repo rate.

Offer Validity:

The FD scheme has been extended several times since its launch in 2020; it is now extended until May 2, 2024. Any resident Indian can invest or renew the FD by this deadline. Non-resident Indians (NRIs) are not eligible for the scheme.

Nomination:

Nomination is an integral part of any investment instrument. The scheme also allows the depositor to change the nominee. They can select the same nominee as they have in their savings bank account or choose another one.

However, in the case of a joint FD, they must select the same nominee made in the savings account. For adding a new person as a nominee, they will have to do it through a bank branch, which is mandatory.

Also Read: How Can You Protect Your Retirement Savings Against Inflation?

Premature Withdrawal Penalty:

It is a callable FD, so one can withdraw the funds anytime. The bank charges a penalty for premature withdrawal. Effective July 22, 2023, the banks charge a penalty of 1.0 per cent on the interest rate if the FD is closed prematurely on or before five years. The penalty is deducted from the interest rate applicable for the period of the FD. For premature withdrawals after five years, the penalty will be 1.25 per cent of the interest rate applicable for the period the FD remained with the bank.