<p>The product, which is similar to recurring deposit (RD) schemes offered by banks, promises variable interest rate earnings to clients unlike the fixed interest rate structure of RDs. The scheme –– HDFC Systematic Savings Plan –– will be available in select cities. A customer can deposit a fixed monthly installment –– in the range of Rs 2,000-Rs 50,000 every month and can choose any period between 24 and 60 months. Under the new plan, HDFC will offer seven per cent, 7.25 per cent and 7.75 per cent per annum for maturities 24-35 months, 36-59 months and 60-months respectively, the firm said.<br /><br />When compared to the fixed deposits offered by most of the banks in the same maturities, variable rates offer 0.25-0.5 per cent more returns to the depositor. The rate will be reset at the beginning of each quarter, HDFC General Manager Resources Dilip Shetty told PTI.<br /><br />“We assess our borrowing costs on an ongoing basis and reprice the deposit products according to the prevailing market conditions. In the current scenario, this scheme offers very attractive returns in this segment,” Shetty said.</p>
<p>The product, which is similar to recurring deposit (RD) schemes offered by banks, promises variable interest rate earnings to clients unlike the fixed interest rate structure of RDs. The scheme –– HDFC Systematic Savings Plan –– will be available in select cities. A customer can deposit a fixed monthly installment –– in the range of Rs 2,000-Rs 50,000 every month and can choose any period between 24 and 60 months. Under the new plan, HDFC will offer seven per cent, 7.25 per cent and 7.75 per cent per annum for maturities 24-35 months, 36-59 months and 60-months respectively, the firm said.<br /><br />When compared to the fixed deposits offered by most of the banks in the same maturities, variable rates offer 0.25-0.5 per cent more returns to the depositor. The rate will be reset at the beginning of each quarter, HDFC General Manager Resources Dilip Shetty told PTI.<br /><br />“We assess our borrowing costs on an ongoing basis and reprice the deposit products according to the prevailing market conditions. In the current scenario, this scheme offers very attractive returns in this segment,” Shetty said.</p>