HDFC on Tuesday announced the launch of a special monthly deposit product to customers that promises higher returns by offering variable rate of interest.

The scheme — HDFC Systematic Savings Plan — will be available from Wednesday for customers in select cities. The customer can deposit a fixed monthly instalment — in the range from Rs.2,000 to Rs.50,000 every month and can choose any period between 24 and 60 months.

The rate of interest, which is linked to the benchmark rate, will be reset at the beginning of each calendar quarter, an HDFC press release said.

Linking deposit rates to the benchmark rate means that customers would get the benefit of higher rate when the interest rate increases.

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