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HDFC Bank FD Interest Rate – Latest HDFC Bank FD Rates

HDFC Bank FD Interest Rates
HDFC Bank FD Interest Rates

Introduction to HDFC Bank FD

HDFC Bank offers multiple FDs across various tenures to its customers. The HDFC banks’ FD rates are higher than their savings bank account rates. HDFC Bank Fixed Deposits can be opened easily through net banking facility. The FD can be linked both with the savings and current accounts. Also, HDFC Bank offers loan against FD and also, an overdraft facility on FD.

Benefits of opening an FD

The benefits of opening an FD with HDFC Bank are:

HDFC Bank FD is an investment that offers good returns at almost negligible risk.

Investment can be made for a tenure between 7 days to 10 days.

HDFC banks’ FD rates are higher.

Interest on HDFC fixed deposits are directly credited to the depositor’s account through the Electronic Clearing Service wherever this facility is available.

For deposits with a tenure above six months, the interest is calculated every quarter.

Fixed Deposit schemes that mature in less than six months earn simple interest.

Through Net Banking, HDFC FD accounts can be opened at convenience.

The FD account can be linked with both current and savings accounts.

The minimum amount for opening an FD account in HDFC Bank is INR 5,000.

Loan against FD can be availed. Up to 90% of the deposit amount, the depositor can avail a loan.

The bank provides a nomination facility.

Sweep in, and a super saver facility is available on the FD account.

The depositor can benefit from compound interest by opting for interest reinvestment.

FD holders can avail up to 90% of overdraft on their FD

HDFC Bank offers senior citizens an additional interest rate of 0.50% per annum over the regular FD rates. Also, an extra 0.25% is offered to senior citizens holding their investments for a tenure five years one day to 10 years. HDFC has named this as Senior Citizen Care FD.

FD accounts offer the benefit of tax exemption for the entire deposit amount.

In accordance with the Income Tax Regulation, tax is deducted at source on the interest earned.

FCNR FD holders can avail overdraft facility on their NRO savings or current account against the deposit amount with a super saving facility.

The FD account can be linked with both current and savings accounts.

The bank accepts the renewal and repayment of the deposit. For this, the depositor must submit a duly discharged deposit receipt at least one week before the date of maturity.

Types of FD Schemes

Below are the six types of FD Schemes offered by 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, nomination facility is available. Also, the Sweep in and super saver facility is 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, and 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.

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. 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 tax saving fixed deposit FD.

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 facility 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.

Resident Foreign Currency (RFC) Account

A Resident Foreign Current Account can be opened only by Non-Resident Indians (NRIs) who have returned to India for a permanent settlement. The permanent settlement has to be not less than one year. This account allows one to hold foreign currency even post turning a resident. In case the account holder goes abroad and becomes an NRO again, the RFC account balance can be repatriated or transferred. There is also an option for individuals to convert the RFC account into an NRE Account or FCNR Account.

Overdraft against FD

HDFC bank offers overdraft facility on the fixed deposit schemes. This option helps the FD depositors to fulfill 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 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

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.

HDFC Bank Deposit Interest Rates

HDFC Bank Fixed deposits are quite attractive instruments with stable and safe returns. For the tenure of seven days to less than one year for all investment limits, the HDFC bank FD rate varies from 2.5%-4.75%. From one year to 3 years, the HDFC bank FD rate for all investment limits varies from 3.35%-5.35%. For three years and above, the HDFC bank FD rate is between 3.35%-5.5%.

HDFC has launched a savings scheme for senior citizens. It’s called the senior citizen care FD. This savings scheme for senior citizens offers a higher interest rate than a regular FD. For senior citizens, the tenure of 7 days to less than one year the FD rates vary from 3.25%-5.25%. From one year to 3 years, the FD rates range from 5.75%-5.85%. For three years and above, the FD rates are 6%-6.25%.

While picking an FD to invest in, it is always recommended to compare the rates for similar tenures and choose the one with the highest bank FD interest rate. The following are the HDFC Bank Fixed Deposit (FD) interest rates.

HDFC Bank Domestic/NRO/NRE Term Deposits Interest Rates 2020

Less than 2 Crore< 2 Crore >= 2 Crore to < 5 Crores >=2 Crore to < 5 Crores
PeriodInterest Rate (per annum)Senior Citizen Rates (per annum)Interest Rate (per annum)Senior Citizen Rates (per annum)
7 – 14 days2.75%3.25%2.50%3%
15 – 29 days3%3.50%2.50%3%
30 – 45 days3.25%3.75%3%3.50%
46 – 90 days4%4.50%3%3.50%
91 days – 6 months4.10%4.60%3.50%4%
6 months 1 day – 9 months4.50%5%4%4.50%
9 months 1 day < 1 Year4.75%5.25%4.25%4.75%
1 Year – 2 Years5.25%5.75%4.75%5.25%
2 years 1 day – 3 years5.35%5.85%5%5.50%
3 year 1 day- 5 years5.50%6%5%5.50%
5 years 1 day – 10 years5.50%6.25%5%5.75%

Note: HDFC bank revises FD rates periodically

Term Deposits Interest Rates 2020 for Amounts Equal to or More than Rs.5 crore (Domestic/NRO/NRE)

Tenure 5.0 cr to 5.25 cr5 cr to 5.50 cr 5.50 cr to 24.75 cr 24.75 cr to 25 cr 25 cr to 200 cr
7 – 29 days2.50%2.50%2.5%2.50%2.50%
30 – 45 days3%2.50%3%2.50%3%
46 – 90 days3%2.75%3%2.75%3%
91 days – 6 months3.50%3%3.50%3%3.50%
6 months 1 day – 9 months4%3.25%4%3.25%4%
9 months 1 day < 1 Year4.25%3.35%4.25%3.35%4.25%
1 year – 10 years4.75%3.35%4.75%3.35%4.75%

Note: HDFC bank revises FD rates periodically

Domestic/NRO and NRE Non-Withdrawable Deposit Rates for deposits >=Rs.5 crore

Tenure5.0 cr to 5.25 cr5 cr to 200 cr
91 days – 6 months3.60%3.60%
6 months 1 day – 9 months4.10%4.10%
9 months 1 day < 1 Year4.35%4.35%
1 year – 10 years4.85%4.85%

Note: HDFC bank revises FD rates periodically 

What is the tenure range for HDFC Bank Fixed Deposit?

The tenure range for HDFC bank FD is seven days to 10 years. The tenure breakdown is given below:

Tenure
7 – 14 days
15 – 29 days
30 – 45 days
46 – 60 days
61 – 90 days
91 days – 6 months
6 months 1 day – 9 months
9 months 1 day < 1 Year
1 Year
1 year 1 day – 2 years
2 years 1 day – 3 years
3 year 1 day- 5 years
5 years 1 day – 10 years

Who is eligible for opening an FD account in HDFC Bank?

The eligibility for opening an 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 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.

What are the documents required to open an FD account in HDFC Bank?

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 

What is the current interest rate on FD in HDFC Bank?

The current interest rates for HDFC Fixed Deposits for regular and senior citizens are mentioned below.

Regular Citizens

  • For the tenure of seven days to less than one year for all investment limits, the HDFC FD rates vary from 2.5%-4.75%.
  • From one year to 3 years, the HDFC FD rates for all investment limits vary from 3.35%-5.35%.
  • For three years and above, the HDFC FD rates are 3.35%-5.5%.

Senior Citizens

  • For senior citizens, the tenure of 7 days to less than one year, the HDFC FD interest rate varies from 3.25%-5.25%.
  • From one year to 3 years, the HDFC Bank FD interest rate varies from 5.75%-5.85%.
  • For three years and above, the HDFC FD interest rate varies between 6%-6.25%.

Additionally, one can calculate the wealth gained from an FD investment, using a fixed deposit calculator. Scripbox’s fixed deposit calculator is available online and is free to use.

Is PAN mandatory to open an HDFC FD account?

A PAN card isn’t mandatory to open an HDFC FD account. However, there are a few implications for the same.

  • Under section 206AA, TDS will be deducted at the rate of 20% instead of the regular 10%
  • The Income Tax department
  • The bank will not issue any TDS certificate.
  • Form 15G/H and other exemption certificates will be invalid and penal TDS will apply.

Can I open an FD account without holding a bank account with HDFC Bank?

Yes, one can open an FD in HDFC Bank without having a bank account. The individual has to submit the following documents for the same.

  • Filled and signed application form
  • Photo identity proof like driving license and aadhar card
  • Address proof like aadhar card
  • KYC documents

Can I take a loan against a fixed deposit?

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

Is the penalty changed for early withdrawal?

The penalty charges for early withdrawal are mentioned in the Terms & Conditions of the bank’s fixed deposit account. Also, penalty for premature withdrawal, including sweep-in or partial closure, has been fixed by the bank at 1% of the fixed deposit interest rate.

What are the tax implications of fixed deposits?

5-year tax saving FDs and FCNR FDs (NRI FD) are the only two FDs whose investment qualifies for tax exemption. However, all the FDs are subject to TDS of 10%. TDS is charged only if the interest earned is above INR 40,000 and (INR 50,000 for senior citizens).  Therefore to know the interest earned is above or below the TDS threshold limit, one can use multiple bank FD calculators available online.

Additionally, one can use the Income Tax Calculator to calculate their tax liability. Scripbox’s Income Tax Calculator is online and free to use.

Does HDFC Bank offer Recurring Deposits?

Yes, HDFC Bank offers recurring deposits for 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. Below are the RD rates for different tenures.

PeriodRD Rates (per annum)Senior Citizen RD Rates (per annum)
6 Months4.10%4.60%
9 Months4.50%5%
12 Months – 24 Months5.25%5.75%
27 Months – 36 Months5.35%5.85%
39 Months – 120 Months5.50%6%

Note: HDFC bank revises RD rates periodically

Frequently Asked Questions

What is the highest HDFC Bank FD Interest Rate?

The highest HDFC Bank FD Interest Rate is 5.5% for a regular investor with an FD amount below INR 2 Cr for the tenure of five years one day to 10 years. Also, for the same tenure and investment limit, the senior citizen FD rate is 6.25%, which is the highest amount of senior citizen FD rates in HDFC. Additionally, returns from HDFC fixed deposits can be calculated using HDFC Bank FD calculators.

What is the minimum amount that I have to give for opening a Fixed Deposit with HDFC Bank?

The minimum amount required to open an FD with HDFC Bank is INR 5,000. There is no limit on the maximum investment amount.

Can I deposit an additional amount in my FD account?

No, one cannot add an additional amount to the FD once it is opened. In case one wants to add an additional amount, then they will have to open a fresh FD.

How can I change the tenure of my existing fixed deposit account with HDFC Bank?

One cannot change the tenure of an existing FD. Once an FD is opened, the tenure cannot be changed. However, one can close the existing FD and start a new FD with the desired tenure.

What is cumulative FD and traditional FD?

Cumulative FD is an FD where interest is compounded monthly and paid at the time of maturity. The interest earns interest in cumulative FD. On the other hand, traditional FD or non-cumulative FD is the one where interest is paid out monthly, quarterly, half-yearly, or annually as per the investor’s choice.

Published on July 3, 2020