HDFC launches systematic savings plan

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HDFC , India's premier housing finance company, is introducing 'HDFC Systematic Savings Plan' [HDFC SSP], a first-of-its-kind deposit product, which offers  a  variable  rate  of interest.  It is a monthly savings plan, where one can deposit a fixed sum every month to accumulate a larger capital for future needs. This plan will be available February 3, 2010 onwards to all resident individuals in select Indian cities where ECS facility is available.

Announcing the launch of the HDFC Systematic Savings Plan, Mr V.S. Rangan, Executive Director, HDFC Ltd.  said,  "HDFC  has  always  been  quick to recognize  the  market  pulse and set higher benchmarks of service delivery through  introduction  of  pioneering  products and services. HDFC SSP is a disciplined approach to wealth creation. It allows the investor to adopt a systematic and dedicated approach to financial planning by inculcating a regular savings  habit  according  to his convenience and ability. We have developed  this  unique  installment  plan  keeping  in mind the safety and growth  requirements  of  especially  the  younger working individuals. For investors looking at earning assured returns over a 2-5 year horizon, SSP will surely emerge as an attractive investment avenue."

HDFC Systematic Savings Plan offers medium to long-term installment options, where the depositor can choose any period between 24 and 60 months and monthly installment amount can range from Rs. 2000 to Rs. 50,000. Being a variable interest rate plan, the rate of interest applicable is linked to the benchmark rate, reset at the beginning of each calendar quarter. The current interest rates for this plan with effect from February 3, 2010 are 7% p.a., 7.25% p.a. and 7.75% p.a. for 24-35 months, 36-59 months and 60 months respectively.

The key-differentiating factor of HDFC SSP is that it offers depositors a secure and steady way to grow their savings. HDFC SSP is also safe from the volatility of the capital market and the variable interest rate offering ensures that the depositor gets the benefit of higher rate when interest rates increases.  The ECS (debit clearing) facility makes investing in HDFC SSP convenient for all.

HDFC Ltd., has displayed consistent performance for over three decades and today is the largest deposit mobilizer outside the banking system in India.

With  a  deposits  base of over Rs. 22,000 crore, depositor base of over 10 lakh  and a strong distribution network of over 25,000 deposit agents, HDFC is  well  equipped  to  offer  a  host  of  deposit products with different maturities   catering   to  the  unique  needs  of  every  investor  be  it individuals, trusts, institutions or corporate bodies.

HDFC Deposits provide Highest Safety, Attractive Returns and Impeccable Service Standards.  HDFC is the only institution in India to have received 'AAA' rating from 2 leading credit rating agencies - CRISIL and ICRA for fifteen consecutive years for its deposits program, thus building maximum trust and confidence year-on-year.