HDFC Bank, which is the biggest private bank in India, has introduced a new initiative for millions of customers. The bank will now make the money deposit process easy for senior citizens under the Senior Citizen Savings Scheme run by the government. In the announcement, HDFC Bank stated, as an agency bank of the government, it will provide an easy and smooth method to access this facility, while the deposits will be made for senior citizens, as per the scheme. The bank also stated customers could apply for the Senior Citizens Savings Scheme at any of the HDFC Bank branches.
8.2% Strong Returns in Investments
HDFC Bank is already processing applications for small savings schemes. These schemes included such as the Public Provident Fund (PPF) and Sukanya Samriddhi Yojana. Currently, the Senior Citizen Savings Scheme is offering a good annual return of 8.2%. The interest rate is announced by the central government, and it will be in effect from April 1st, 2024 March 31st, 2025.
HDFC Bank increases interest on deposits of more than Rs 5 crore
HDFC Bank has increased interest rates on fixed deposits in several categories. The interest rate has been increased by 5 to 10 basis points. This interest rate is applicable for all tenors. The interest rate has been increased to compete with other banks. When the Reserve Bank decides to reduce the repo rate to maintain the growth rate, the interest rates of banks also change. According to the Reserve Bank, the growth of bank deposits and loan growth till December 2024 is 11.5 percent. HDFC Bank offers 7.4 percent interest on fixed deposits for a period of 1 year to 15 months, and 6.6 percent to 7 percent interest on deposits for a period of 1 year to 5 years.
Will the interest rate on loans also increase?
After increasing the interest rate on fixed deposits of these two banks, many are thinking that this time the interest rate on loans may also increase. However, this completely depends on the repo rate of the Reserve Bank. The money deposited in the bank is given as a loan and higher interest is charged on the loan, which makes the bank profitable. Punjab National Bank has also given a great gift to its customers in this new year. This bank has increased the interest rate on fixed deposits. The bank has changed the interest rate for some selected tenors.