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There are many private, PSU’s and NBFC’s which provide the facility of fixed deposit investment scheme. Out of these many financial institutions, HDFC (Housing Development Finance Corporation Limited) bank provides the best interest rate. HDFC Bank is the largest private sector bank in India by assets and was also announced as the largest bank in India by market capitalisation in March 2020. HDFC’s deposits are considered safest in the country as confirmed by CRISIL and ICRA by giving “FAAA/Stable” rating and “MAAA (stable)” respectively. The bank provides a range of FD schemes which caters to all the persons’ needs.
Types of HDFC FD Schemes
- Regular Fixed Deposit
- Overdraft against FD
- FCNR Fixed Deposit
- 5-year Tax Saving Fixed Deposits
Benefits of HDFC Fixed Deposit
- HDFC Bank FD rate ranges between 2.50 per cent to 5.50 per cent p.a which is higher than other banks and the tenure ranges between 7 days and 10 years.
- Senior citizens get a rate which is 0.50 per cent extra from the normal rate.
- The process at HDFC is hassle-free with net banking facility.
- To ensure that the funds are given to your family if any unforeseen situation takes place you can nominate a family member.
- You can avail loans worth up to 90 per cent of the total FD valuation.
- As per the Income Tax Act, 1961 amount accrued from interest is deductible under Tax Deducted at Source (TDS).
- You won’t receive any interest if your fixed deposit matures in seven days.
- HDFC bank offers a facility where the FD account can be linked with your savings account or current account.
- A penalty of 2 per cent is charged if you make any withdrawals before the FD is matured.
- To open an overdraft against FD account a minimum of Rs 25,000 is required.
- You have an option to change the tenure, maturity instructions and payment before the maturity date.
- If you open HDFC Bank Foreign Currency Non-Resident (FCNR) Fixed Deposit account you can hold the deposit in any of the major global currencies i.e., US dollar, pounds sterling, Australian dollars, Euro, Japanese Yen and Canadian dollars.
- Avail fully repatriate principal and interest amount.
- In case of FCNR deposit, there is a tax exemption on the entire deposit.
- In an HDFC Bank 5-year Tax Saving Fixed Deposit scheme you can invest within the range of Rs.100 and Rs.1,50,000 lakh.
- The interest rate for the Tax Saving FD is 5.50 per cent p.a. for the general public and 6.25 per cent p.a. for senior citizens.
Documents Required To Open The FD Account
- ID Proof and address proof
- PAN Card
- Recent passport-size photograph.
- If you need an exemption from TDS then submit Form 15G/15
HDFC Interest Rates
| Tenure | < 2 Crore | >=2 Crore to < 5 Crores | ||||
| Interest Rate | Senior Citizen | Interest Rate | Senior Citizen | |||
| 7 – 14 days | 2.50% | 3.00% | 2.50% | 3.00% | ||
| 15 – 29 days | 2.50% | 3.00% | 2.50% | 3.00% | ||
| 30 – 45 days | 3.00% | 3.50% | 2.75% | 3.25% | ||
| 46 – 60 days | 3.00% | 3.50% | 2.75% | 3.25% | ||
| 61 – 90 days | 3.00% | 3.50% | 3.00% | 3.50% | ||
| 91 days – 6 months | 3.50% | 4.00% | 3.00% | 3.50% | ||
| 6 mnths 1 days – 9 mnths | 4.40% | 4.90% | 3.50% | 4.00% | ||
| 9 mnths 1 day < 1 Year | 4.40% | 4.90% | 3.75% | 4.25% | ||
| 1 Year | 5.10% | 5.60% | 4.00% |
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| 1 year 1 day – 2 years | 5.10% | 5.60% | 4.00% |
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| 2 years 1 day – 3 years | 5.15% | 5.65% | 4.25% |
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| 3 year 1 day- 5 years | 5.30% | 5.80% | 4.25% | 4.75% | ||
| 5 years 1 day – 10 years | 5.50% | 6.25%* | 4.25 | 5.00%* |
*An Additional Premium of 0.25% (over and above the existing premium of 0.50%) shall be given to Senior Citizens who wish to book the Fixed Deposit less than 5 crores for a tenure of 5 (five) years One Day to 10 Years, during special deposit offer commencing from 18th May’20 to 31st Dec’20.
How is Interest Rate Calculated
- The interest is calculated on a quarterly basis if the tenure of the deposit is below 6 months with quarterly interest payout option.
- For deposits having a tenure below 6 months with monthly interest payout option, the interest is calculated for the quarter and but it paid monthly at a discounted rate over the standard deposit rate.
- Deposits with tenure of fewer than 6 months with interest reinvestment option, cumulative interest for the quarter is added to the principal in the subsequent quarter and interest is calculated on the total amount.
- On fixed deposits with a tenure equal or above 6 months then the simple interest is paid.
