HDFC Annuity Deposit Scheme

Planning an early retirement? Check out the HDFC Annuity Deposit Scheme for better returns for a secure future and easy financial management. The HDFC annuity deposit scheme allows you to make one big investment then provide a series of payments made at equal intervals, usually monthly, quarterly, half yearly or annually, for a specified period or for the lifetime of the annuitant.

The HDFC Annuity Deposit Scheme offers annuity plans with flexible payout options, tax benefits, and attractive interest rates of 5.7% - 8.1% p.a. Eligible for individuals aged 18 to 99, it accommodates both single and joint life options, helping you with retirement planning.

HDFC Annuity Plan Interest Rates

HDFC annuity deposit scheme offers different rates of return for different types of annuity plans. ‘The Life annuity with return of purchase price’ offers an interest rate of 5.7 - 6.4% p.a. This is because the plan allows the investor to earn an income for life and for the Nominees to get the benefits paid after the death of the investor.

However, the Lifetime annuity without the return of the initial investment offers an interest rate of 7.6% - 8.1% p.a. This scheme offers a high rate of return as the bank does not have to return the purchase price to the appointed nominee in case of death.

In summary, the interest rates are:

Besides, HDFC Monthly Income Plan you can also check & compare the HDFC Fixed Despoit Rates. You can compare them while considering FD investments with HDFC Bank.

For HDFC Fixed Deposit return calculation, you can use the online FD Calculator. This will simplify your financial calculations to invest in a planned manner.

HDFC Bank Annuity Deposit Scheme Eligibility Criteria

The HDFC Bank Annuity Deposit Scheme offers you a structured way to save for your future financial needs. Before investing it is important to understand the eligibility criteria. This helps you assess whether the scheme aligns with your financial goals and objectives.

Age Limit:

• 18 years to 70 years (if sold through Point Of Sales Persons or POSP)
• 85 years (For Life annuity with return of purchase price when diagnosed with a critical illness).
• 99 years for other annuity plans.

HDFC Annuity Deposit Tax Benefits

The annuity deposit scheme HDFC can also help you reduce your tax burden. You will be eligible for tax benefits under sections 80C and 10(10D) of the Income Tax Act, 1961.

Types of HDFC Annuity Scheme Deposit

HDFC bank offers a wide range of annuity plans under the Single life annuity options and Joint life annuity options. Thus, a variety of these plans help individuals with various financial goals find their retirement solutions. The different types of annuity deposit scheme in HDFC bank are:

HDFC Single Life Annuity Options

• Life Annuity: The Life Annuity offers a steady stream of income for as long as you live. Payments will be made to you at a fixed amount at an interval of your choice, whether monthly, quarterly, half-yearly or annually and it will only stop in the event of your death. After which, no additional payout will be provided to your beneficiaries.
• Life annuity with return of purchase price: This plan provides you with consistent income payments at a fixed rate throughout your lifetime. These payments are guaranteed by HDFC, ensuring financial security. These payments will be made regularly and will continue for as long as you live. In the unfortunate event of your passing, your beneficiaries will receive a 100% payout of the initial amount you invested in the plan.
• Life annuity with return of balance purchase price:The plan combines guaranteed income with a safety net for your beneficiaries. You'll receive consistent income payments at a fixed rate for life. However, upon your passing, your beneficiary will get the remaining amount of your initial investment. If the total annuity payments you received during your lifetime exceed your initial investment, no additional payout will be made to your beneficiary.
• Life annuity with a guarantee period: This Annuity plan provides a guaranteed income for your entire lifetime. Payments are made regularly, usually monthly, quarterly, or annually, but they refer to the preceding period.
• You have the option to select a guaranteed period of either 5, 10, 15, or 20 years. The payment duration will be influenced by your lifetime or the chosen guaranteed period, whichever comes first. Once this period ends, annuity payments stop and no further amounts are paid to you or your beneficiaries.
• Life annuity with 5% escalation: This annuity will be paid in arrears for your entire lifetime. Each year, the payment amount will automatically increase by 5%, of which, the first increased payment will be received one year after you start receiving payments. It's important to note that these payments will stop upon your passing, and no further amount will be paid to your beneficiaries.
• Life annuity with return of purchase price in parts: The annuity will be paid in regular instalments,in arrears, throughout your lifetime. After 7 years, 30% of the purchase price is given to you upon survival. If you pass away after seven years, the annuity payments will stop, and 70% of the purchase price is paid to your nominee. If you pass away within seven years, the annuity payments cease, and the full purchase price is paid to your nominee.
• Life annuity with return of purchase price on diagnosis of critical illness: The annuity will be paid at a uniform rate in arrear, throughout your lifetime. If you are diagnosed with a critical illness before reaching the age of 85 or upon your death, whichever comes first, the annuity payments will stop, and 100% of the purchase price of the annuity will be paid out. In the event of your death, the purchase price will be paid to the nominee.

HDFC Joint Life Annuity Options

This option is for investments made by partners between a primary annuitant and a secondary annuitant in place.

The Joint life annuity options are:

• Joint Life Annuity with 100% annuity to the secondary annuitant: The Joint Life Annuity offers income for as long as at least one partner is alive. After the first partner passes away, the surviving partner receives 100% of the original annuity income for their lifetime. Payments cease entirely upon the death of the last surviving partner, with no payout to beneficiaries.
• Joint Life Annuity with 50% annuity to the secondary annuitant: This deposit scheme offers a joint life annuity plan with a 50% survivor benefit, ideal for couples seeking income security throughout their retirement. Payments are made regularly throughout the lifetime of the primary annuitant. Where, upon their demise, the surviving partner will continue to receive 50% of the original annuity amount for their lifetime. Payments will cease entirely upon the death of the last surviving annuitant, and no further amount is payable to any beneficiaries. Even if the secondary annuitant predeceases the primary annuitant, there will be no payout to beneficiaries.
• Joint Life Annuity with 100% annuity to secondary annuitant and return of purchase price: The plan offers a unique dual benefit ensuring income security for both partners throughout their retirement. The payments are made regularly (in arrears) for as long as at least one partner is alive. Upon the death of the first partner (primary annuitant), the surviving partner (secondary annuitant) will receive 100% of the original annuity amount for their lifetime. But, in case both partners pass away, a lump sum payout of 100% of the initial investment (purchase price) is provided to the beneficiary.
• Joint Life Annuity with 50% annuity to secondary annuitant and return of purchase price: In this plan, payments are made at a consistent rate (in arrears) for as long as at least one of the partners are alive. If one partner passes away (primary annuitant), the surviving partner (secondary annuitant) will continue receiving 50% of the original annuity amount for their lifetime. However, upon the passing of both partners, your beneficiary will receive a lump sum payout of 100% of your initial investment (purchase price).

Features of Annuity Deposit Scheme in HDFC

The features of HDFC annuity deposit scheme are as follows:

• Variety of Annuity Options: Choose from multiple Single Life and Joint Life Annuity plans to fit your specific needs.
• Rewarding Investment: Benefit from potentially higher annuity rates for larger investments or purchase price.
• Secured Returns: Get a Return of Purchase Price option upon death or critical illness, ensuring your investment is protected.
• Flexible Payouts: Receive your annuity income monthly, quarterly, half-yearly, or yearly, whichever best suits your preferences.
• Banks and financial institutions can take advantage of the scheme to purchase immediate annuities, fulfilling their commitment to homeowners under reverse mortgage plans.

HDFC Bank Annuity Deposit Payment Modes

The HDFC annuity deposit scheme offers a variety of payment methods to facilitate premium payments and policy renewals. These include credit card, internet banking, cheque, and auto debit facility.

HDFC Annuity Plan Calculator

Planning for a secure retirement requires informed decisions. For this, the HDFC Bank offers a convenient online calculator to estimate your potential returns beforehand.

This user-friendly tool simplifies the process by allowing you to see different investment scenarios. To use the HDFC annuity plan calculator, simply input factors like principal amount, interest rate, and tenure to explore various options. By visualising potential returns, you can identify the investment amount that best aligns with your retirement goals.