HDFC Bank and IDBI Bank recently announced that they will discontinue their respective senior-focused special fixed deposit (FD) schemes with effect from October 1.
Most of the lenders launched their plans at the onset of COVID-19, but some of them have started discontinuing them since then. Where IDBI’s Naman Senior Citizen Deposit started on April 20. HDFC Senior Citizen Care FD was unveiled on May 18, 2020.
IDBI’s Naman Senior Citizen Deposit:
With this scheme, older people get an additional 0.75% interest rate (0.25% on top of the current rate plus an additional 0.50% p.a.). It takes a year to 10 years to reach maturity.
HDFC Senior Citizen Care Fixed Deposit:
It takes five to ten years to mature. Non-resident Indians are not eligible for this program (NRI). Customers who opt for the Senior Citizen Care FD offer will get 0.75% higher interest. TDS will be deducted when the interest or reinvestment payable on RDs and FDs exceeds Rs 40,000 (Rs 50,000 for senior citizens) in a financial year for a customer across all branches.
If the Fixed Deposit booked under the above offer is prematurely closed (swapped in or partially closed) on or before the stipulated 5 year period, the rate of interest will be at the contracted rate or the base rate effective during that time. 1.00% less than time, whichever is less.
