Fixed Deposits (FDs) are great for investors of all ages because they provide the proper mix of returns and security. The HDFC bank offers many value-added FDs, such as the HDFC SureCover FD, that provide several benefits.
What is HDFC Surecover FD?
HDFC SureCover FD combines the benefits of a Fixed Deposit with the protection of term life insurance. This way it aims to protect your family’s future. When you open an HDFC SureCover Fixed Deposit with HDFC Bank, you get a term life insurance policy. The insurance for the first year that is equal to the principal amount you invest. This implies you will not be required to pay a premium for the entire year.
The Fixed Deposit amount, which is the same as a conventional HDFC Bank FD, also earns you competitive interest rates. You can choose between monthly or quarterly interest payments with the HDFC Bank SureCover Fixed Deposit, depending on your preferences. With a reinvestment FD, you can receive compound interest. Owing to the insurance benefit, the investor can protect his or her family from an unfortunate event leading to a loss of life.
For the first year, you’ll have life insurance coverage equal to the amount you invested. HDFC SureCover FD provides residents between the ages of 18 and 50 with the dual benefit. It provides investment growth through an FD and security through a one-year life insurance policy for the Primary FD holder.
If you need funds for an unexpected expense, this FD offers an overdraft of up to 90% of principal amount. This feature comes in handy when unexpected expenses arise and you find yourself short on cash. In addition, interest payments can be made monthly or quarterly.
HDFC Surecover FD Interest Rates 2023
|Tenure||Interest Rates (per annum)||Senior Citizen Rates (per annum)|
|1 year 1 day – 2 years||5.00%||5.50%|
|2 years 1 day – 3 years||5.20%||5.70%|
|3 year 1 day- 5 years||5.45%||5.95%|
|5 years 1 day – 10 years||5.60%||6.35%|
Features of the HDFC Surecover FD
- An investor can invest a minimum amount of Rs 2 lakhs and a maximum amount of Rs 10 lakhs
- The investor can invest for a time period of anywhere between 12 months to 120 months.
- The interest rate is the same as that of a regular HDFC Bank Fixed Deposits. However, the regular fixed deposit interest rates depend on the type of the investor and the duration of the investment.
- A resident of India within the age group of 18 to less than 50 years.
- The investor can avail of an overdraft facility against the investment in HDFC SureCover FD. The overdraft facility is available up to a maximum of 90% of the FD amount invested.
- The term life insurance cover available with SureCover FD is valid for a period of one year, after which you can renew it. However, the applicable premium amount will have to be paid for each year, starting from the second year onwards.
- In case you decide to withdraw funds >=50% within the 1st year, the life insurance benefit will not continue. Also, existing premature liquidation clauses will be applicable.
- The amount of life insurance cover is equal to the principal Fixed Deposit amount.
- An investor can invest in one HDFC SureCover FD only. If an FD is matured or prematurely withdrawn then the investor can reinvest in the FD scheme after a 1-year. This 1 year will be considered as a cooling period.
- The resident investor who is within the age group of 18- <50 years of age are offered a dual benefit. To begin with, it provides investment growth via fixed deposits. Secondly, it offers security through life insurance of one year for the Primary FD holder.
Benefits of the HDFC Surecover FD
- You may make a secure investment that protects your family’s future while also meeting your investment objectives with the HDFC Bank SureCover Fixed Deposit. It combines the advantages of a fixed deposit with the security of term life insurance.
- Depending on his or her financial planning, the customer can select a flexible interest payment option. A customer can choose to receive periodic interest payments (monthly/quarterly). This will them to help manage his or her costs, or a re-investment deposit, which can earn compound interest.
- Instead of liquidating your FD and suffering a penalty, you can easily take out an overdraft on your FD. The OD facility will be up to 90% of the total amount of your Fixed Deposit. An OD against FD requires a minimum FD amount of Rs 25,000/- for a minimum period of 6 months 1 day. You can get instantaneously through HDFC Bank NetBanking. Only pay interest on the amount borrowed, while your Fixed Deposit continues to earn interest.
Terms and Conditions of HDFC Bank Surecover FD
- The complimentary insurance is only valid for the first year of the Fixed Deposit term. After which the premium for subsequent years (if any) will be charged and paid by the principal holder of the FD.
- Premature or partial liquidation of FD principal amount >=50% of total FD booked would result in cancellation of the complimentary policy granted.
- It is necessary to make a nomination in the FD and Policy. If the nominee is a minor, the facts of the nominee’s guardian or appointment should be disclosed, and the guardian or appointee should not be a minor.
- Per customer ID, only one policy can be purchased for each FD. After a year from the premature withdrawal/closure of the previous FD, a new policy against the FD can be obtained.
- Only the primary holder of the FD will be covered by the insurance.
- The details for renewing the policy for the following year (i.e. the second year onwards) will be supplied by the concerned Insurance company on or before the Policy’s expiration date.
- TDS will be applicable on these FDs as per the extant statutory guidelines.
- The principal holder of the FD must be between the ages of 18 and 50 to be eligible. If a member’s age changes between the date of receipt of member consent and the risk start date, the member’s sum insured will be calculated based on his or her age on the risk commencement date.
- Apart from the SureCover FD annexure, existing HDFC bank customers do not need to submit other documents with their Fixed Deposit application form.
- Along with the Fixed Deposit application form, non-HDFC bank customers must submit address verification, identity proof, a current photograph, and the SureCover FD annexure.
Premature Withdrawal of the HDFC Bank Surecover FD
- The rate of interest applicable on premature closure of an HDFC fixed deposit will be lower of these criteria. The interest rate for the original tenure for which the fixed deposit has been booked. The base rate is applicable for the tenure for which the deposit has been in force with the Bank.
- The base rate for any fixed deposit booked on or after March 7, 2019, is the rate applicable to deposits of less than Rs.2 crore on the date the deposit is booked. Prior to this, the base rate was the rate that applied to deposits of less than Rs.1 crore at the time the deposit was booked.
- If a Fixed Deposit is prematurely closed (including a sweep in / partial closure), the interest rate will be 1% lower than the contracted rate or the base rate in effect for the time the deposit has been with the bank, whichever is lower.
Frequently Asked Questions
HDFC SureCover FDs pay the same interest as HDFC Regular Fixed Deposits.
Yes, the HDFC SureCover FD has a monthly/quarterly interest payout option. The rate on monthly payouts, on the other hand, will be lower than the usual deposit rate.
A resident of India belonging to the age group of 18 years to 50 years can invest in the HDFC Bank SureCover FD.
Yes, non-HDFC customers can apply for the SureCover FD at any HDFC Bank branch.
TDS will be applied on the HDFC SureCover FD in accordance with current requirements.
The life insurance policy will be valid for one year and can be renewed by the primary holder by paying the necessary premium amount from the second year onwards.
For the first year, the customer is not required to pay a premium. However, the premium for subsequent years, starting with the second year (if applicable), will be charged and paid by the FD’s primary holder.
If a customer has an active HDFC SureCover FD under his customer ID then he or she cannot get another SureCover FD. Customer, on the other hand, can only get another SureCover FD after completing a one-year cooling period from the maturity or pre-closure date of his or her existing FD.
Apart from the HDFC SureCover FD annexure, existing HDFC bank customers do not need to submit any other documents with their Fixed Deposit application form. Along with the Fixed Deposit application form, non-HDFC bank customers must submit address verification, identity proof, a current photograph, and the SureCover FD annexure.
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