HDFC Bank Fixed Deposit

HDFC Bank offers multiple fixed deposits for various tenures with different interest rates to its investors. The interest rate on HDFC Bank FDs is higher in their savings account. One can invest in HDFC Bank FDs through both online and offline modes with just a minimum investment of INR 5,000.

HDFC Bank Fixed deposit schemes

Following are the types of HDFC Bank fixed deposit schemes:

• Regular Fixed Deposit
• 5 Year Tax Saving Fixed Deposit
• Foreign Currency Non-Resident (FCNR) Fixed Deposit
• Overdraft Against Fixed Deposit
• No Withdrawal Fixed Deposit
• HDFC Bank HealthCover FD

1. HDFC Bank Regular FD

The Regular fixed deposit FD provides flexibility and security to the depositor. It offers attractive and high returns. Regular FD can be conveniently booked through net banking. Additionally, a nomination facility is available. Also, the Sweep and super saver facilities are available.

Individuals can take a loan against a fixed deposit of up to 90% on the deposit amount. Loans such as loan against property, business loan, education loan, etc., can be taken against FD. However, the loan interest rate varies based on the bank and type of loan. Also, one can always calculate their loan EMI using the loan EMI calculator.

Resident Indians, Organisations, HUFs, Sole proprietorship firms, trusts, and companies can open a regular fixed deposit account.

2. HDFC Bank 5 Year tax saving FD

A tax savings investment option that qualifies for tax deduction under Section 80C of the Income Tax Act. Interest on the deposit is compounded quarterly. Also, this account too can be opened through net banking. Also, in the case of joint deposits, only the first holder is eligible for tax savings. A nomination facility is available. One can opt for either monthly or quarterly payouts. HUFs and Resident Indians of 18 years or above can open the 5 Year HDFC Bank tax-saving fixed deposit FD.

3. HDFC Bank Foreign Currency Non-Resident (FCNR) FD

Through the FCNR account, foreign currencies earn Indian fixed deposit rates. In other words, it allows depositors to invest in foreign currencies. The NRI FD enables the holders to repatriate their entire principal amount and interest amount. Additionally, the depositors benefit from tax exemption on the entire deposit amount. FCNR FD holders can also avail overdraft facilities on their NRO savings or current account against the deposit amount with a super saving facility. The Foreign Currency Non-Resident (FCNR) Fixed Deposit FD can be opened by Non-Resident Indians (NRIs) and people of Indian Origin.

4. HDFC Bank Overdraft against FD

HDFC bank offers an overdraft facility on the fixed deposit schemes. This option helps the FD depositors to fulfil their financial needs with our having to break their FDs. The FD holders can avail up to 90% of overdrafts on their fixed deposits. The interest is paid only on the drawn amount. Overdraft against a fixed deposit scheme can be linked with both savings and current accounts. Therefore, to avail of the overdraft against fixed deposit, the minimum amount in the FD has to be INR 25,000 for a minimum tenure of six months one day.

5. HDFC Bank No Withdrawal FD

As the name suggests, a No withdrawal fixed deposit scheme doesn’t allow any premature withdrawal or partial withdrawals of funds from the fixed deposit. However, depositors can opt for monthly or quarterly interest payouts. For all deposits with a tenure that is above six months, interest computation is done every quarter. HDFC Bank FD interest rate for a monthly interest option is computed at a discount rate. The discount rate is over the standard fixed deposit interest rates offered by the HDFC bank. The sweep-in facility, premature withdrawals, and partial withdrawals are not allowed. In accordance with the Income Tax Regulations, tax is deducted at source by the bank. Deposits of the value INR 5 crores or above can open a No withdrawal fixed deposit account.

6. HDFC Bank HealthCover FD

HDFC Bank HealthCover FD combines the benefit of investing in FD with security of a health insurance cover. The health insurance cover involves Hospital Cash Cover for the first year.

• Hospital Cash Cover of Rs 500 per day for 15 days on FD Amount 5 lacs to < 10 lac
• Hospital Cash Cover of Rs 1000 per day for 15 days on FD Amount >=10 lacs to 1.99 Cr
• Min FD amount: 5 lacs, Max FD amount: 1.99 cr
• Flexi Tenure – Min tenure: 1 year, Max tenure: 10 years
• Interest rates offered is same as Regular Fixed Deposit
• Monthly/quarterly interest payout option is available
• Grow income with compound interest on reinvestment deposits

Key Features of HDFC Fixed Deposit Schemes

• Premature withdrawal: All HDFC bank FDs can be withdrawn prematurely except for tax saving FDs. HDFC Bank charges a 1% penalty on the interest for premature withdrawals. However, their penalty is subject to change as per HDFC Bank terms and conditions.
• Nomination facility: HDFC bank FD investors can nominate beneficiaries for their FDs.
• Auto-renewal: Investors can opt for auto-renewal of their HDFC Bank FDs.
• Safety: The Deposit Insurance Scheme of RBI covers all HDFC bank deposits. The scheme covers all HDFC bank deposits up to INR 5,00,000.
• Additional payments: Investors cannot deposit an additional amount in an HDFC bank FD once commenced. However, they can open a fresh HDFC FD with the new amount.

Does HDFC Bank Offer Recurring Deposits?

HDFC Bank offers recurring deposits to its depositors. HDFC recurring deposits have a minimum tenure of six months and thereafter, in the multiples of three months. The maximum tenure of the recurring deposit is ten years. Depositors can open an RD account either by going to the bank branch or online using net banking.

How to Open an HDFC Bank FD Deposit Account?

One can open an HDFC Bank FD account through various modes such as Internet Banking, Mobile App and offline.

Internet Banking

The following steps will help an individual to open an HDFC Bank FD account through internet banking:

• Login to the NetBanking account.
• Under the ‘Transact’ tab, select the ‘Open Fixed Deposits’ option.
• Select the branch, enter the tenure of the FD and investment amount. Provide nominee details. Next, click on the ‘Continue’ button and then ‘Confirm’ the details.  
• Investors can instantly download the fixed deposit advice (receipt) of the deposit.

Through Mobile App

HDFC Bank App

The following steps will guide in opening an FD account through HDFC Bank Mobile App:

• Download the HDFC Bank App and log in.
• In the main menu option, under the ‘Save’ tab, select the ‘Deposit’ option to proceed.
• Next, select the ‘Open Fixed Deposit’ option.
• Provide all the necessary deposit details and nominee details.
• On confirmation, one can instantly download the fixed deposit advice (receipt) of the deposit.

Offline HDFC Bank FD Opening

To open an HDFC Bank FD account offline, one has to visit the nearest HDFC Bank branch. Fill the HDFC Bank FD application form and submit all the necessary documents along with the deposit amount. On successfully processing the application, HDFC bank will provide an FD receipt.

Documents Required to Open a HDFC Bank FD

While opening a fixed deposit account, the following are the list of documents required:

• Account opening form
• Recent passport size photograph
• KYC Documents
• Individual & Company: PAN Card, Aadhar Card, Passport copy, Voter’s ID or Driving License
• HUFs: Self-attested PAN card, HUF declaration deed, and bank statement of HUF
• Partnership Firms: Certificate of Incorporation, Partnership Deed and ID proofs of authorized signatories 

Eligibility to Open a HDFC Bank FD

The eligibility for opening an HDFC FD account varies based on the type of account.

• Regular FD: Residents Indians, Organisations, HUFs, Sole proprietorship firms, trusts, and companies can open a regular fixed deposit account.
• 5 Year tax saving FD: HUFs and Resident Indians of 18 years or above can open the 5 Year tax-saving fixed deposit.
• Foreign Currency Non-Resident (FCNR) FD: The Fixed Deposit can be opened by Non-Resident Indians (NRIs) and people of Indian Origin.
• Resident Foreign Currency (RFC) Account: The Account can be opened only by Non-Resident Indians (NRIs) who have returned to India for a permanent settlement. This permanent settlement has to be not less than one year.
• Overdraft against FD: To avail of the overdraft against fixed deposit, the minimum amount in the FD has to be INR 25,000 for a minimum tenure of six months one day.
• No withdrawal FD: Deposits of the value INR 5 crores or above can open a No withdrawal fixed deposit account.

How are HDFC Bank FDs taxed?

Only investment in HDFC bank Tax Saving FD qualifies for tax saving up to INR 1,50,000 per annum. Investment in no other HDFC bank FDs qualifies for tax saving under Section 80C of the Income Tax Act. The interest income from HDFC FD is taxable as per the investor’s income tax slab rates. Moreover, the interest income is subject to TDS of 10% if the income from HDFC FD exceeds INR 40,000 per annum. For senior citizens, the TDS threshold limit is INR 50,000 per annum. Also, if the investor doesn’t disclose PAN Card details to HDFC Bank, then the TDS rate will be 20%.

Is HDFC Fixed Deposit Safe?

HDFC bank FDs guarantee return in the form of interest. The interest on HDFC FD is paid regularly or at maturity as per the choice of the investor. Moreover, all HDFC bank deposits are covered by the Deposit Insurance Scheme of RBI. The scheme cover all HDFC bank deposits up to INR 5,00,000. Hence HDFC Bank FDs are safe for investment.

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