HDFC Bank provides investment opportunities such as fixed deposits. FD enables investors to use any surplus funds for interest income. The program is suitable for fixed interest rates and predetermined periods.
For 7 days to 10 years, the HDFC fixed deposit can be opened. The interest on FDs ranges from 2.50% to 5.50% per year.
Types of HDFC time deposit plans
- Regular fixed deposit
- Dream deposit
- Five-year tax-free time deposit
- Overdraft against fixed deposit
- HDFC NRI fixed deposit
Regular Fixed deposit
- The annual HDFC FD interest rate of the FD plan is in the range of 2.50%. To 5.50% per year
- Senior citizens are eligible for an HDFC FD interest rate 0.50% higher than the regular interest rate.
- According to the Income Tax Act of 1961, the interest income earned by HDFC bank FD fixed deposits shall be taxed as “source deduction tax (TDS)”.
- In case you withdraw early within 7 days after opening your account, you will not receive any deposit interest.
- You can use an online banking method to open or close an HDFC fixed deposit account.
- The term of HDFC bank fixed deposit is 7 days to 10 years.
- Provide nomination facilities.
HDFC Bank’s “Dream Deposit” program provides you with the flexibility to enjoy the same rates as banks FD and RD to achieve your goals. The best thing is that, unlike a typical FD account, you will not be fined for account interruption or monthly payments. If you are an existing customer, you can open this deposit with the help of online banking; if you do not have an account in the bank, you can visit the bank or call the customer service centre to open an account.
Five-year tax-free fixed deposit
- As the name suggests, this deposit is only used to save taxes. As per Article 80C of the Income Tax Law, you can save taxes.
- If it is a joint deposit, only the first holder is eligible to enjoy the tax benefits under 80C.
- There are nomination facilities.
- HDFC fixed deposit interest is calculated quarterly.
- Depositors can choose to pay monthly and quarterly.
- It can be activated through online banking.
- Indians residents over 18 years old
HDFC NRI fixed deposit
- Many types of Fixed Deposit can meet your needs.
- The minimum deposit for a new account is 25,000 rupees, and the minimum deposit for additional accounts is 10,000 rupees.
- All interest and principal can be remitted back.
- You can benefit from an overdraft of NRO savings or a current account of up to 90% of the FD amount.
- The term of the loan is at least 1 year, and the longest-term is 10 years.
- In India, the amount of interest earned is exempt from income tax.
Overdraft against fixed deposit
- This feature gives you the benefit of working with two accounts together
- Depositors can choose between savings accounts and current accounts to establish an association with fixed deposit accounts
- The reward for providing overdraft services is to supplement your family or business needs.
- Interest during the payback period only applies to the amount withdrawn, while the remaining fixed deposits continue to earn interest.
- Residents, HUF, private and public limited companies are all eligible.
Other features of HDFC fixed deposit
- You can use loans, and credit cards with the lowest interest rate through HDFC fixed deposits with 90% FD.
- Online benefits, such as booking fixed deposits, appointing nominees, clearing deposits, and viewing fixed deposit recommendations.
- You can get compound interest by reinvesting the principal and the amount of interest earned during the FD period
- Available transfer tools, if your savings or current account balance is below a certain limit, you can transfer funds from FD to your savings or current account.
- Avail Super Saver tool can use the funds in your savings or current account, and you can choose between savings or current account to link it to FD, and use the overdraft line to meet your needs.
How to calculate the interest rate of HDFC bank fixed deposit?
- If the tenure of the fixed deposit is less than 6 months, and there is a quarterly interest payment option, the interest will be calculated quarterly.
- For fixed deposits with a maturity of fewer than 6 months and a monthly interest payment option, the interest for the quarter will be calculated and the interest will be paid monthly at a discount rate relative to the standard deposit interest rate.
- Fixed deposits with a maturity of under a half year and have the alternative of interest reinvestment. The gathered interest of the quarter is added to the principle of the following quarter and the interest is determined dependent on the aggregate sum.
- For fixed deposits with a maturity of 6 months or more, simple interest will be paid.
Eligibility criteria for HDFC Bank FD
- Indian residents
- Undivided hindu family members
- Sole proprietorship
- Partnership organizations
- Trust Fund
- limited liability company
Documents to be submitted when opening an FD at HDFC Bank
- Proof of identity and address verified by the government
- PAN card
- Form 15G / 15F (if you need to be exempt from TDS)
- A recent passport-size photo.