HDFC Bank Fixed Deposit: An Overview
HDFC Bank offers a wide range of Fixed Deposit (FD) options for individuals and senior citizens. HDFC provides customers best FD rates in the industry and is one among the most well-reputed banks in India. It is very easy to open a HDFC term deposit online and this can be done by logging in to the HDFC internet banking account. HDFC offers tax-saver deposits and a number of other FDs that come with seep-in facility, loan/overdraft facility and online booking facility. Use the FD Calculator to know exactly how much you will earn through the FD. The online FD calculator will tell you the maturity value of your deposit and the total interest earned. The FD calculator will help an investor choose how much to invest and for how long to invest. To know the maturity amount, enter the principal amount, tenure, rate of interest and type of FD.
HDFC, expanded as Housing Development Finance Corporation Limited, was established in 1994. The Bank was one of the first banks in the country to get an approval ‘in principle’ from the Reserve Bank of India (RBI), to operate in the private sector in 1994 in collaboration with RBI towards it’s ‘Liberalisation’ policy. All fixed deposit programmes offered by the bank are rated by well reputed and trustworthy credit rating bodies.
How to open a Fixed Deposit in HDFC online
- Log on to HDFC internet banking
- Go to the requests section in the ‘Accounts’ tab and click on ‘Open Fixed Deposit’
- Choose the branch, tenure of deposit, principal, type of deposit, nominee,etc
- Verify details and click ‘Continue’
- Click ‘Confirm’ to successfully open FD
- Download the time deposit advice
Benefits of opening HDFC term deposit online
- Faster, simple and hassle-free
- No need for paperwork
- FD can be liquidated instantly
- FD can be renewed online
- Appoint nominees online
- Submit 15G/H forms
HDFC Bank Fixed Deposits
HDFC Bank offers different types of FDs that cater to different needs. The following are the different types of FDs:
HDFC also offers different interest rates for various investment slabs. These include:
- Domestic deposits (less than Rs.1 crore)
- Domestic deposits (Rs.1 crore to Rs.5 crore)
- Domestic deposits (Rs.5 crore and above)
Features of HDFC Bank Fixed Deposits
- Convenience factor of booking FDs online
- Competitive interest rates
- Higher interest rates for senior citizens
- Attractive interest payout options
Interest Payout Options Offered by HDFC Bank
Customers can choose different interest payout options based on their financial needs. Below is the table of the various options to choose from:
||Interest is paid each month
||Interest is paid every quarter
|Lump Sum at maturity
||Interest is paid at the time of maturity along with the principal
Monthly: This type of interest payout option gives the investor interest income each month. This is ideal for customers looking for a monthly income to meet their needs.
Quarterly: if you choose a term deposit that pays interest every quarter, you can take advantage of the interest compounding factor.
Lump Sum at maturity: These are cumulative deposits, where the interest is paid only at the time of maturity.
Eligibility criteria to open HDFC FD
Following individual/groups are eligible to open an FD:
- Hindu Undivided Families
- Partnership firms
- Sole proprietorship firms
- Trust accounts
Interest rates for HDFC FDs
HDFC bank offers competitive industry rates on FDs and also a wide range of flexible tenure options. There are many types of FDs offered and various tenure ranges. Investors can go for short-term, medium-term or long-term FDs. The best FD rate offered on HDFC bank FDs is 6.75% for individuals and 7.25% for senior citizens.
The interest rate offered for individuals ranges from 3.50% to 6.75% and for senior citizen, the interest slab ranges from 4.00% to 7.25%.
HDFC FD Calculator
To calculate the interest that you will earn on an FD, use the online FD calculator. This tool will help you ascertain the interest earned and the total value of the FD after completion of the tenure. For example, if you invest Rs.1 lakh in a reinvestment plan for 1 year, the maturity amount will be Rs.1,06,923. On the other hand, if you choose a quarterly payout option, the total value of the investment will be Rs.1,06,749. Here, the total interest earned will be Rs.6,749.
- Deposit Amount: Rs.1 lakh
- Rate of Interest: 6.75%
- Tenure: 1 year
- Maturity Amount: Rs.1,06,923
- Total Interest Earned: Rs.6,923
Documents required to open HDFC FD
- PAN card
- Aadhaar card
- Driving licence
- Voters ID
For senior citizens
Along with other identity proof documents, senior citizens will have to provide proof of age in order to claim additional interest rate.
Important points to note on HDFC FD
Minimum and maximum amount: The minimum amount required to open an FD is Rs.5000, while there is no cap on the upper limit.
Minimum and maximum tenure: The minimum tenure for HDFC deposits is 7 days, while the maximum is 10 years.
PAN: It is a must to provide PAN card details when you open an HDFC FD.
Tax and Tax Deducted at Source (TDS): The interest earned on term deposits are taxable under Section 80C of the Income Tax Act. TDS will be applicable to be deducted if the interest income earned is more than Rs.10,000 in a given financial year.
HDFC online banking services: HDFC deposit holders can avail the various benefits of online banking.
Loans on HDFC FD: HDFC provides loan and overdraft facility on all FDs. A loan of up to 90% of the FD can be taken at a very nominal interest rate. The account holder can continue to earn interest on the remaining amount.
Benefits for senior citizens: Senior citizens who are residents of India enjoy an increased rate of 0.50% over the existing rate of interest on their fixed deposit schemes. In fact, on long tenure fixed deposit accounts, senior citizens residing in India can get interest up to 7.25% p.a., which is compounded quarterly.
Credit cards against FDs: HDFC issued credit cards against fixed deposits at a very minimal interest rate. A credit card will be issued to a customer depending on the type and value of FD held. HDFC is one among the market leaders in the credit card industry.
HDFC NRI fixed deposits: HDFC offers NRO, NRE and FCNR deposits for all NRIs. These types of deposits are ideal for NRI’s who want to park their earnings in India.
Premature withdrawals: HDFC allows all customers to close a deposit prematurely and withdraw funds. However, this will be subject to a penalty at the rate of 1%.
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