About National Housing Bank Fixed Deposit
National Housing Bank is a wholly owned unit of Reserve Bank of India. In the year 1987, an act of the parliament led to the birth of this institution. NHB is the apex body for housing finance in the country. This financial institution has been set up with the aim of acting as the principal agency to promote housing loans at local as well as regional levels. NHB also endeavours to provide financial and related support to other agencies that indulge in matters related to housing finance. The functions of NHB include registering, regulating, and supervising Housing Finance Companies (HFCs) and keeping surveillance as well as coordinating with other housing finance regulators.
NHB offers a wide variety of financial products and services and indulges in a host of financial functions. NHB fixed deposits have been rated FAAA by CRISIL and TAAA by Fitch both of which are world renowned rating agencies. This makes these deposits a safe and a profitable choice for customers.
Apart from these functions, NHB also offers various financial products and tools like fixed deposits which are very popular with the public in general. These FDs offer customers attractive returns for deposits held for differing tenures.
What is the eligibility criteria for availing a fixed deposit from NHB?
The following are the entities that are eligible to open a Fixed Deposit with NHB –
- Resident Individuals
- Trust Accounts / Associations
- Sole Proprietorship Firms
- Partnership Firms
- Limited Companies
- Societies
NOTE: To open a fixed deposit, a minimum deposit of ₹ 50, 000 is required.
What are some of the fixed deposit schemes offered by National Housing Bank?
National Housing Bank offers a total of three fixed deposit schemes to choose from. Each of these schemes is listed below along with its main features and benefits.
- NHB SUNIDHI Term Deposit Scheme:
This fixed deposit scheme is applicable to all individuals, trusts, societies, partnership firms and so. The minimum deposit amount required is ₹ 50,000 and there on in multiples of ₹ 10000. Both cumulative as well as non-cumulative schemes are available under this fixed deposit category. Nomination and pre-closure options are available and are subject to bank regulations.
- NHB SUVRIDDHI (Tax Saving) Term Deposit Scheme:
Suvriddhi Scheme of fixed deposit is specially made for customers who are looking to save on tax through their fixed deposit. This scheme too is available both in variants of cumulative as well as non-cumulative types. The minimum amount required for this fixed deposit account is ₹ 10,000 and thereby in multiples of ₹ 1000. The maximum amount that can be deposited per year is ₹ 1,00,000. All individuals and HUFs can apply for this fixed deposit product. Tax benefits under section 80C of the Income Tax Act are applicable.
- Special Term Deposit Scheme for HFCs:
This fixed deposit scheme is specially designed for Housing Finance Companies. The scheme has been rated FAAA and AAA by CRISIL and by FITCH respectively. This is applicable only to agencies that accept deposits from public. Both cumulative and non-cumulative interest pay-out options are available under this deposit scheme.
What is the minimum deposit amount with which I can open a fixed deposit with NHB?
The minimum amount required to open a fixed deposit account depends on the type of fixed deposit scheme that you wish to avail. Here is a list of the applicable amounts –
- NHB SUNIDHI Term Deposit Scheme:
Minimum Amount Required – ₹ 50,000
- NHB SUVRIDDHI (Tax Saving) Term Deposit Scheme:
Minimum Amount Required – ₹ 10,000
- Special Term Deposit Scheme for HFCs:
Minimum Amount Required – ₹ 25,00,000
What is the maximum amount needed to get a fixed deposit scheme from NHB?
- NHB SUNIDHI Term Deposit Scheme:
Maximum Amount Allowed – ₹ 1,00,00,000 per depositor
- NHB SUVRIDDHI (Tax Saving) Term Deposit Scheme:
Minimum Amount Allowed – ₹ 1,00,000
- Special Term Deposit Scheme for HFCs:
Minimum Amount Allowed – ₹ 50000000, after which NHB approval is required
How do I obtain a fixed deposit account with NHB?
For opening a fixed deposit account with NHB, you need to visit the nearest NHB local branch and get the application form, fill it and submit it along with the required details.
What are the interest rates applicable on fixed deposit schemes offered by National Housing Bank?
According to the fixed deposit scheme availed, the applicable rate of interest varies –
- NHB SUNIDHI Term Deposit Scheme:
| Duration of Deposit |
Rate if Interest |
| 12 Months |
8.25% |
| 24 Months |
8.25% |
| 36 Months |
8.50% |
| 60 Months |
8.50% |
The subsequent rates for senior citizens are 0.6% over and above the regular rates mentioned in the table.
- NHB SUVRIDDHI (Tax Saving) Term Deposit Scheme:
Rate of Interest – 8.5% per annum and 9.10% per annum for senior citizens
- Special Term Deposit Scheme for HFCs:
Rate of Interest – 8.5% per annum and 9.10% per annum for senior citizens
Is there a tax-saver fixed deposit scheme offered by NHB?
Yes. NHB SUVRIDDHI (Tax Saving) Term Deposit Scheme offers deposits which fetch an income tax exemption under section 80C of the Income Tax Act.
Are fixed deposits offered by NHB taxable?
Yes. In case the interest on the FD is equal to or more than ₹ 10000 in a year, income tax at 10% is deducted. However, if the interest received in a year is more than ₹ 10000 and the PAN number has not been provided then a tax of 20% on the interest received is levied.
What are some of the most significant features of fixed deposits by National Housing Bank?
Here are a few exciting and differentiating features of NHB fixed deposits:
- Highly competitive rate of interest
- Nomination facility is available for deposit schemes
- Pre-closure facility is available as per guidelines by the bank
- Tax-saver scheme is available
- Senior citizens get to avail better rates
Can I avail loan from NHB if I have a fixed deposit account with the bank?
No. Loans are offered only to agencies that act as lenders of loans to individual borrowers.
Does NHB offer special rates to senior citizens on fixed deposits?
Yes. Special and higher rates of interest are offered to senior citizens who hold a fixed deposit. The rates are mostly, 0.6% above the regular rates offered by the bank.
Can a credit card be availed against my fixed deposit held with National Housing Bank?
No. Currently, credit cards from National Housing Bank are not available as a financial product.
Does National Housing Bank allow premature withdrawals?
Yes, premature withdrawals are allowed by National Housing Bank subject to certain terms and conditions.
When are premature withdrawals not permitted?
Premature withdrawals are not allowed in the first three months of a deposit, counted from the date the money was deposited.
What are the penalties for premature withdrawal?
If a withdrawal is made after 3 months but before 6 months no interest will be paid on the amount. If a premature withdrawal is made after 6 months and before the maturity date a penalty which is 2% lower than the interest rate will be charged for the period that the deposit was active. In cases where there is no specified interest rate for that particular period a penalty which is 3% lower than the minimum rate at which HDFC accepts public deposits will be levied.
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