HDFC Bank Limited is one of India’s major private-sector banks. It is based in Mumbai, Maharashtra, and is the third-largest corporation by market capitalization on the Indian stock exchanges. HDFC offers a wide range of products and services, including wholesale banking, retail banking, different types of loans, and credit cards.

HDFC Bank offers its customers a variety of Fixed Deposit options in which they can deposit additional funds for a certain period of time and earn substantial returns. The depositor is needed to deposit the money just once while opening an account with the bank. The money will be secured for the time frame indicated, and interest will be paid accordingly. Additional money cannot be deposited or withdrawn during the tenure.

HDFC Bank FD Rates 2024

I. Fixed Deposit Interest Rate (Less Than ₹2 Crores)

II. Fixed Deposit Interest Rate (₹2 Crores – ₹5 Crores)

Features of HDFC Fixed Deposit

1. Tenure: HDFC Ltd FDs have tenure that range from 12 to 120 months. Furthermore, once an HDFC Ltd FD started, it cannot be changed.

2. Investment: HDFC Ltd FD requires a minimum investment of ₹5,000. However, there is no maximum amount limit for investments in an HDFC Ltd FD.

3. Rate of Interest: Interest Rates for HDFC Ltd FDs range from 5.25% to 6.5% for normal residents and from 5.5% to 6.75% for senior citizens. Furthermore, HDFC Ltd provides senior citizens persons with an extra 0.25% interest rate on savings up to ₹2 crore. Investors can select a monthly, quarterly, half-annual, yearly, or maturity interest payout frequency.

4. Premature Withdrawl: All HDFC Ltd fixed deposits can be withdrawn prematurely after three months. HDFC Ltd pays just 3% interest on deposits withddawn after three months but before six months. For deposits withdrawn after six months but before maturity, HDFC Ltd levies a 1% interest rate penalty.

5. Loan Against FD: HDFC Ltd provides loans against their FDs after three months from the date of deposit. Investors can get up to 75% of their investment amount as a loan, subject to HDFC Ltd. conditions. Also, the loan’s interest rate will be 2% above the deposit rate.

6. Nominee: Individual FD investors in HDFC Ltd can nominate beneficiaries for their FDs.

Types of HDFC Bank FD Schemes

1. HDFC Bank Regular FD

Offer depositors with recurring monthly income. Monthly interest is credited directly to the depositor’s bank account.

2. HDFC Bank 5 Year Tax Saving FD

3. HDFC Bank HealthCover FD

4. Overdraft Against Fixed Deposits

How to Invest in HDFC FD?

There are several ways to create an HDFC FD account, including offline, Internet Banking, and using a mobile app.

1. Internet Banking

To start an HDFC FD account using internet banking, follow the procedures outlined below,

• Login to your HDFC NetBanking account.
• Select the Deposit Opening’ option from the ‘Online Term Deposit’ menu.
• Read and thoroughly review all of the ‘Terms & Conditions’ before proceeding to fill out all of the required information.
• Using a one-time password (OTP), authenticate the transaction.
• The FD account will be opened after successful login. Its acknowledgement slip will also be accessible for download.

2. HDFC Mobile App

To create an FD account using the HDFC Mobile App, follow the procedures outlined below,

• Sign in to the HDFC App after downloading it.
• To proceed, select the Term Deposits option.
• Fill out all of the information, including personal information, nominee information, and maturity instructions.
• Using a one-time password (OTP), authenticate the transaction.
• The FD account will be opened after successful login. Its acknowledgement slip will also be accessible for download.

3. Offline HDFC FD Opening

To open an HDFC FD account offline, go to your local HDFC branch. Fill up the HDFC FD application form and submit it together with all required papers and the deposit amount. When the application is properly processed, the HDFC will provide an FD receipt.

Eligibility to Open an HDFC FD Account

When considering to invest in HDFC FDs, investors have to fulfil the following criteria,

1. You must have an individual or joint FD account with the bank.

2. NRIs can only invest through NRE and NRO accounts.

3. Investor should be memeber of HUF which stands for Hindu undivided family.

4. Minors can invest in these FDs as well, but they must be accompanied by their parents or guardians.

5. For these sort of Investments ,Trusts, public and private limited companies, partnerships, and sole proprietorships are also eligible.

Documents Required to Open HDFC FD

For Opening an FD in HDFC Investors must ensure that they have the following documents with them,

1. Proof of Identity

• Pan card
• Voter ID
• Aadhaar card
• Ration card including a photograph
• Driving license
• Senior citizen ID
• Passport

2. Proof of Address

• Electricity bill
• Telephone bill
• Bank statement with cheque
• Passport
• Identity card issued by Post Office

Tax on HDFC Bank Fixed Deposit

You must pay taxes on the interest that you earn from a fixed deposit. Interest income contributes to your total tax obligation. Furthermore, you should be aware that the interest from FDs is added to your annual income. Your tax slab is derived using your overall earnings. Since interest on fixed deposits is considered ‘income from other sources,’ it is subject to TDS. The TDS is deducted immediately after the interest income gets credited to your account.

• If your yearly income is less than ₹2.5 lakh, you are not required to pay any tax on your FD. However, you may be required to file Forms 15G or 15H to claim deductions.
• Your annually interest income from all fixed deposits is tax-free if it does not exceed ₹40,000.
• A 10% TDS would be applicable on annually interest income of more than ₹40,000. Furthermore, if an individual does not have a PAN card, the bank may deduct 20% TDS.

Loan Against HDFC Bank FD

To meet urgent personal or business financial demands without compromising the FD. Depositors can borrow up to 90% of their FD as an overdraft facility at nominal interest rate with no processing fees and foreclosure charges.

Premature Closure of HDFC Bank Fixed Deposit

HDFC Bank charges an interest rate on premature closure.

• The base rate for the deposit’s initial term.
• The base rate that is applicable for the duration that the deposit has been with the HDFC bank.

All deposits of less than ₹1 crore made on the date of booking will be charged at the base rate. For any deposits of more than ₹5 crore, the base rate shall be ₹5 crore as of the date of booking. HDFC Bank will impose a 1% penalty on premature withdrawals.

For Example, consider sweep-ins and partial withdrawals. The premature withdrawal penalty does not apply to fixed deposits planned for 7 to 14 days.

Frequently Asked Questions (FAQs)

1. Can both account holders get income tax benefits in the case of a joint account?

Answer:

In the event of a joint account, only the first account holder is entitled for income tax benefits under Section 80C of the Income Tax Act of 1961.

2. How many Fixed Deposits (FDs) may be opened at HDFC Bank?

Answer:

There is no limit on the number of FDs you can open with HDFC Bank.

3. How can I check the fixed deposit balance at HDFC Bank?

Answer:

You may check the HDFC Bank FD balance online or offline.Log in to the HDFC Bank internet banking portal. Alternatively, you can go to your local HDFC Bank branch to update your passbook for FD balance queries.

4. Is PAN required to open an HDFC FD account?

Answer:

Yes, a PAN is required for opening and operating an HDFC FD account.

5. Can I modify the tenure of my HDFC fixed deposit account?

Answer:

You cannot modify the tenure, but you can terminate the old account and establish a new one with the tenure of your choice.