Senior Citizen Care Fixed Deposit: Hurry Up Now to Invest!

Senior Citizen Care Fixed Deposit: Hurry Up Now to Invest!

30 November, 2023


Key Takeaways

• FDs are one of the most popular investment avenues for senior citizens.

• Senior Citizen Care FD provides rates higher than the normal FDs.

• You can select from flexible interest payment options.

• The minimum amount to invest is just ₹5000 with maximum amount going up to ₹4,99,99,999.99

• FDs protect your funds from market risks and volatility.
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Fixed Deposits are quite popular investment avenues with senior citizens as they provide fixed returns and do not get affected by market fluctuations like equities or other market-linked instruments. Senior citizens enjoy the advantage of higher returns as compared to normal FD rates. The benefit is even higher if you opt for HDFC Bank Senior Citizen Care FD. Let’s explore more about this special FD and , let’s see why you should be investing in Fixed Deposits.

Features of Senior Citizen Care FD

Here are some of the lucrative features of Senior Citizen Care FD:

1) Higher Interest Rate: Senior Citizens can enjoy a higher interest rate with HDFC Bank Senior Citizen Care FD. Apart from the existing premium of 0.5% over the regular FD rate, Senior Citizen Care FD provides an additional 0.25% over and above the 0.5% premium. Here’s how it works:

Tenor and Interest Rate in ₹ (Per Annum)

<2 Cr. Deposit

>= ₹2 Cr. to < ₹5 Cr. Deposit

Regular Rate

Senior Citizen Rate

Regular Rate

Senior Citizen Rate

5 years 1 day to 10 years

7%

7.75%*

7%

7.75%*


The benefit of the above additional rate of 0.75% is applicable on the special offer between 18th May 2020 to 15th April 2024. Further, this scheme is for those depositors who wish to deposit below ₹5 crores.

2) Age Eligibility: As this scheme is solely for the benefit of senior citizens, only the resident individual whose age is 60 years or above is eligible to apply for Senior Citizen Care FD.

3) Applicable for New Deposits and Renewals: If you already have a Fixed Deposit whose renewal date falls within the offer period, you can take benefit of the above special rates. This offer is applicable for new Fixed Deposits as well as renewals during this period by senior citizens. However, it shall not be applicable for non-resident deposits.

4) Premature Closure: Incase you opt for premature closure of this special Fixed Deposit (including sweep in / partial closure), the interest rate will drop as follows- (a) Premature closure on or before 5 years, the interest rate will be 1.00% below of the rate on the date of deposit booked, to the period for which deposit remained with the bank. (b) Incase of premature closure of Fixed Deposit after 5 years, the interest rate will be 1.25% below of the rate on the date of deposit booked, to the period for which deposit remained with the bank.

5) Not Applicable on Recurring Deposits: The benefit of the above premium rate is applicable only to Fixed Deposits and not to recurring deposits by senior citizens.

6) Quarterly and Monthly Interest Payout: The offer is valid on both quarterly and monthly interest payout on Fixed Deposits of amounts less than ₹5 crores and tenure of 5 years and 1 day or above. The monthly payout will be paid at a discounted rate as compared to the standard rate.

7) Minimum and Maximum Amount: You can invest in Senior Citizen Care FD with a minimum amount of ₹5000 and a maximum amount of ₹4,99,99,999.99 (i.e., less than ₹5 crores).

8) Minimum and Maximum Tenure: You can invest in Senior Citizen Care FD for a minimum tenure of 5 years and 1 day and a maximum tenure of 120 months.

9) Other Terms and Conditions: The other terms and conditions relating to Senior Citizen Care FD shall be the same as applicable to normal Fixed Deposits.

Benefit of Fixed Deposit investment

Being a senior citizen, here are the top reasons why Fixed Deposits should be your go-to investment option:

  • Stability and Security: FDs are considered a low-risk investment avenue. They provide a fixed interest rate for a predetermined period thus, protecting your capital from market uncertainties. The principal amount you invested in FDs is generally considered safe, making it an attractive option for senior citizens who may prioritise stability and security over high returns.

  • Regular Income: FDs offer interest payouts that provide a steady and predictable source of income. Senior citizens can choose the frequency of interest payouts like monthly, quarterly or at maturity depending on their cash flow needs.

  • Ease of Operation: FDs are quite simple investment avenues. Opening an FD is a straightforward process and the terms and conditions are usually transparent. You can directly invest in FD using the 3-step process on the HDFC Bank Website, NetBanking or MobileBanking app of HDFC Bank. Senior citizens may prefer the simplicity of FDs especially if they are not comfortable with more complex investment options.

  • No Market Volatility: The returns on FDs are not linked to the market. Therefore, FDs are not subject to market fluctuations.

  • Senior Citizen FDs: HDFC Bank offers special FD schemes for senior citizens with higher interest rates compared to regular FDs.

  • Liquidity: FDs typically provide liquidity through premature withdrawal options. However, there may be penalties for early withdrawals. This feature allows senior citizens to access funds in case of urgent financial requirements.

  • Diversification of Portfolio: While it's important to have a diversified investment portfolio, having a portion of funds in FDs can act as a stabilising factor. If you have already invested in equities or other avenues with high risk, then FDs can be a great investment to reduce your overall portfolio risk.

How Can You Invest in Senior Citizen Care FD

If you are an existing customer of HDFC Bank, you can invest in this FD through the 3-step process on the HDFC Bank Website, NetBanking or MobileBanking app of HDFC Bank. Alternatively, you can simply visit your nearest HDFC Bank branch. If the tenure selected is 5 years 1 day to 10 years, then the special FD rate will get auto-populated for senior citizens. The branch only needs to take the declaration form along with the FD form for booking such FDs.

Investing in Senior Citizen Care FD provides you with unmatched returns. The regular interest allows you to stay on top of your cash flow needs while ensuring your capital stays safe with HDFC Bank. Click here to begin investing today!


*Terms and conditions apply. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances.

Click here to begin investing today!

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