HDFC launches variable interest rate deposit plan

Top housing finance company HDFC has introduced its ''HDFC Systematic Savings Plan' a first-of-its-kind deposit product offering a variable rate of interest.

The product is a monthly savings plan in which deposits of a fixed amount every month can be made to accumulate a large capital. The plan would is open from today to all resident individuals in select Indian cities where ECS facility is available.

Announcing the launch of the plan V S Rangan executive director, HDFC Ltd said that the HDFC SSP is a disciplined approach to wealth creation that allows investors to adopt a systematic and dedicated approach to financial planning through a regular savings habit to suit their convenience and ability.

He added that HDFC had developed the unique installment plan considering the safety and growth requirements of especially the younger working individuals. For investors looking for assured returns over a 2-5 year horizon, SSP would emerge as an attractive investment avenue.

HDFC Systematic Savings Plan offers medium to long-term installment options, where the depositor can choose from among 24 to 60 month periods with monthly installment amounts ranging between Rs2000 to Rs50,000.

As it is a variable interest rate plan, the rate of interest is linked to the benchmark rate, reset at the beginning of each calendar quarter. The current rates of interest offered on this plan from 3 February are 7 per cent for a tenure of 24-35 months, 7.25 per cent for 36-59 months and 7.75 per cent for 60 months.