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What are the HDFC Green Deposits?

The urgency of the hour is to protect our environment from climate change. HDFC has created Green & Sustainable Deposits. It is a product that promotes the United Nations’ Sustainable Development Goals, to help fight climate change (SDGs). Green & Sustainable Deposits will enable HDFC to participate in programs that directly promote the UN’s Sustainable Development Goals (SDGs). It will also empower our depositors to choose financial products that benefit the environment and society as a whole.

Eligibility for HDFC Green and Sustainable Deposits

  • An individual who is a Resident of India.
  • An individual who is a minor through his or her guardian. The guardian must not be a tax resident of any other country and a resident of India.

HDFC Green Deposits Interest Rates 2022

Special Deposits

Interest rates on Deposits upto Rs. 2 Crore

PeriodMonthly Income PlanQuarterly OptionHalf-Yearly OptionAnnual Income PlanCumulative Option*
33 Months5.90%5.95%6.00%6.10%6.10%
66 Months6.30%6.35%6.40%6.50%6.50%
99 Months6.35%6.40%6.45%6.55%6.55%
Minimum Amount (Rs.)40,00020,00020,00020,00020,000

Premium Deposits

Interest rates on Deposits upto Rs. 2 Crore

PeriodMonthly Income PlanQuarterly OptionHalf-Yearly OptionAnnual Income PlanCumulative Option*
44 Months5.95%6.00%6.05%6.15%6.15%
Minimum Amount (Rs.)40,00020,00020,00020,00020,000

Regular Deposits

Interest rates on Deposits upto Rs. 2 Crore

PeriodMonthly Income PlanQuarterly OptionHalf-Yearly OptionAnnual Income PlanCumulative Option*
36-59 Months5.75%5.80%5.85%5.95%5.95%
60-83 Months6.10%6.15%6.20%6.30%6.30%
84-120 Months6.25%6.30%6.35%6.45%6.45%
Minimum Amount (Rs.)40,00020,00020,00020,00020,000

Interest rates on Deposits exceeding Rs. 2 Crore upto Rs. 10 Crore

PeriodMonthly Income PlanQuarterly OptionHalf-Yearly OptionAnnual Income PlanCumulative Option*
36-59 Months5.65%5.70%5.75%5.85%5.85%
60-83 Months5.85%5.90%5.95%6.05%6.05%
84-120 Months5.95%6.00%6.05%6.15%6.15%

Interest rates on Deposits exceeding Rs. 10 Crore & below Rs. 25 Crore

PeriodMonthly Income PlanQuarterly OptionHalf-Yearly OptionAnnual Income PlanCumulative Option*
36-59 Months5.70%5.75%5.80%5.90%5.90%
60-83 Months5.80%5.85%5.90%6.00%6.00%
84-120 Months5.90%5.95%6.00%6.10%6.10%

Interest Payment on HDFC Green and Sustainable Deposits

Interest will be payable on the deposit from the date of deposit of the amount to the credit of HDFC. This will be treated as the effective deposit date. The following is the payout structure for the interest on deposits placed under different plans. Such plans are the Monthly Income Plan, Non-Cumulative Option, Annual Income Plan, and Cumulative Interest Option.

Monthly Income Plan, Non-Cumulative Option, Annual Income Plan

Monthly Income Plan (MIP)Last day of each month
Non-cumulative– Quarterly optionJune 30, September 30, December 31 and March 31
Non-cumulative – Half-yearly optionSeptember 30 and March 31
Annual Income PlanMarch 31

Cumulative Interest Option

  • After deducting tax, if applicable, interest will be compounded annually and accrued every year.  
  • The principal along with interest will be paid on maturity once the discharged deposit receipt is received by us. 
  • If the first interest due date for MIP and Non-Cumulative deposits falls within a week of the deposit date,
  • The interest for the first withdrawn period will be paid in the next interest cycle.

Payment of Interest on HDFC Green Deposits

  • At all centres where this feature is offered, the interest amount (net of TDS – where applicable) will be paid by NACH. 
  • If this option is not available, interest will be paid using an “Account payee” check made in the name of the first-named depositor and his bank account information. 
  • On the last day of the month, interest on MIP under Variable Rate Deposit will be credited to the depositor’s bank account.
  • Depositors can take advantage of the NACH service, which allows them to have their interest credited straight to their bank accounts. A credit entry “HDFC” would appear in the depositor’s passbook or bank statement. An annual notification of interest credited would be sent.
  • Senior citizens (60 years and over) will be entitled to a 0.25% annual bonus on deposits up to Rs. 2 crores.
  • Individual deposits up to Rs 50 lakh per calendar month per client placed/renewed through the Online system, as well as auto-renewed deposits, will earn an additional 0.10% p.a.

Premature Withdrawal on HDFC Green and Sustainable Deposits

  • Premature withdrawal requests may be allowed at the Corporation’s exclusive discretion. Such discretion is subject to the Non-Banking Financial Company – Housing Finance Company (Reserve Bank) Directions, 2021, as amended from time to time.
  • Before the completion of three months from the date of acceptance, a premature withdrawal will not be permitted. 
  • If you request a premature withdrawal after the three-month period has passed, the rates listed below will apply.
Months completed from the date of depositRate of Interest Payable
Minimum lock in period3 months
After 3 months but before 6 monthsThe interest payable shall be 3% per annum for the individual depositor, and no interest in case of other categories of depositors.
After 6 months but before the date of maturityThe interest payable shall be 1% lower than the interest rate applicable for the period for which the deposit has run or if no rate has been specified for that period, then 2% lower than the minimum rate at which the public deposits are accepted by HDFC. In respect of variable rate deposit, the interest rate applicable for the period for which the deposit has run would be considered as applicable on the respective interest reset dates.

TDS on Interest on HDFC Green and Sustainable Deposits

  • TDS will not be deducted on interest paid or credited upto Rs 5000 in a financial year. 
  • The TDS is deducted as per Section 194A of the Income Tax Act, 1961
  • The interest income will be taxable under the head income from other sources. The income will be chargeable at the income tax slab rate.
  • Every depositor must quote their PAN to HDFC. If they fail then TDS will be deducted at a flat rate of 20%.
  • The depositor can submit Form 15G or Form 15H for a nil or lower deduction of TDS.
  • Form 15G is applicable if the deposit is not liable to pay tax for the financial year. Furthermore, the interest to be paid/credited in a financial year does not exceed the maximum amount which is not chargeable to income tax. 
  • Form 15G is a declaration to ensure nil deduction of tax deducted at source. 
  • A senior citizen who is above the age of 60 years may submit a declaration in  Form No.  15H. 
  • For both Form 15G and Form 15H quoting their PAN is mandatory. A failure to do so would make both the forms invalid. This would also mean that TDS would be deducted at 20% as per section 206AA(1) of the Income-Tax Act, 1961.
  • TDS certificates will be mailed or dispatched to the registered address every quarter. 
  • The TDS certificate would provide the details of the interest income and TDS deducted. 

Renewal or Repayment of Deposits

  • The discharged deposit receipt must be given to HDFC for deposit renewal or refund. 
  • If you want to renew your deposit, you must also submit the necessary application form, which must be signed by all depositors. 
  • The deposit period will begin on the maturity date of the renewed deposit, and the interest rate in effect on that date will apply. 
  • The renewed deposit’s maturity date should be at least one week after the actual date of renewal of such overdue deposits
  • Premature withdrawal will be prohibited for three months after the actual date of renewal.

Maturity of HDFC Green Deposits

  • The depositor has the option of choosing auto-renewal when the deposit matures. 
  • In such instances, the deposit would be automatically renewed at maturity under a similar product for the same term at the rate of interest in effect at the time of maturity. 
  • If identical product/period alternatives are not available on the maturity date, the deposit will be renewed for the longest term possible. 
  • The depositor can, however, cancel the auto-renewal order and request repayment before the maturity date. 
  • However, if no explicit maturity instruction is provided, the maturity amount will be automatically remitted to the depositor’s bank account from whence the funds were received on the maturity date.
  • In the event of a second tenure maturity (following the first auto-renewal), the sum will be automatically sent to the chosen bank account at maturity, unless the depositor gives specific instructions otherwise.
  • Interest will accrue after the maturity date only if the deposit is renewed.

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