Senior citizen? Investing in FD? HDFC Bank special FD scheme extended

Senior citizens are often looking for a risk-averse way to park their retirement funds. Thus, they often shy away from stock market, real estate, and other such investment options that may provide higher returns but nothing is guaranteed in these. Then, there are fixed deposits (FDs) which, in general, barely beat the inflation. However, senior citizens may not need to worry much about their FD rate of interest.


HDFC Bank is offering higher rate of interest on FDs to senior citizens.

The bank has extended this scheme till June 30, 2021.

Titled ‘Senior Citizen Care FD Scheme’, the scheme was launched about a year ago when interest rates began falling. The bank claims the same was launched to take care of senior citizens so that they do not have to suffer.

It must be noted that risk-free interest rates are on the decline. When earlier the savings bank (SB) interest was around 4% per year, not it is below 3%.

Also read: Pay Visa card bills using cryptocurrencies?

With this background in mind, the FD rate provided to a senior citizen is 6.25% per year under this scheme for an FD of less than Rs 5 crore. The tenure required for the same is 5 years to 10 years. For a Rs 1 lakh FD, total interest earned is Rs 38,042 with the final maturity value (before any tax deduction) is Rs 1,38,042

For comparison, for similar terms and conditions, the interest rate provided by Canara Bank is 6%. For a Rs 1 lakh FD, total interest earned is Rs 34,686 here with the final maturity value (before any tax deduction) is Rs 1,34,686

Thus, we see that a 0.5% increase in the FD rate gave use Rs 3,356 more on Rs 1 lakh FD for a five years tenure.

Get the latest update about Reports, check out more about Rate of Interest, Investment, Announcements & Analysis

Like us on Facebook or follow us on Twitter for more updates.