• Overview of National Housing Bank Fixed Deposit

    National Housing Bank or NHB offers three fixed deposit schemes, namely – NHB SUNIDHI Term Deposit Scheme, NHB SUVRIDDHI (Tax Saving) Term Deposit Scheme, and Special Term Deposit Scheme for HFCs. The investment tenure ranges from 12 months to 60 months. The rates of interest range from 6.75% p.a. to 7.00% p.a. Senior citizens are eligible for an additional rate of 0.60% p.a.

    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 Rs. 50,000 is required for the NHB SUNIDHI Term Deposit Scheme. The minimum deposit for the NHB SUVRIDDHI (Tax Saving) Term Deposit Scheme is Rs.10,000. The minimum deposit for the Special Term Deposit Scheme for HFCs is Rs.25 lakh.

    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 Rs. 50,000 and there on in multiples of Rs. 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 Rs. 10,000 and thereby in multiples of Rs. 1000. The maximum amount that can be deposited per year is Rs. 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 – Rs. 50,000

    • NHB SUVRIDDHI (Tax Saving) Term Deposit Scheme:

      Minimum Amount Required – Rs. 10,000

    • Special Term Deposit Scheme for HFCs:

      Minimum Amount Required – Rs. 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 – Rs. 1,00,00,000 per depositor

    • NHB SUVRIDDHI (Tax Saving) Term Deposit Scheme:

      Minimum Amount Allowed – Rs. 1,00,000

    • Special Term Deposit Scheme for HFCs:

      Minimum Amount Allowed – Rs. 50000000, after which NHB approval is required

    How to Open 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.

    Interest Rates on Fixed Deposit Schemes Offered by National Housing Bank

    According to the fixed deposit scheme availed, the applicable rate of interest varies –

    1. NHB SUNIDHI Term Deposit Scheme:
      Duration of Deposit Rate if Interest for General Public Rate if Interest for Senior Citizens
      12 Months 6.75% 7.35%
      24 Months 6.75% 7.35%
      36 Months 7.00% 7.60%
      60 Months 7.00% 7.60%

      Note: The rates of interest are effective as of 10 May 2021.

    2. NHB SUVRIDDHI (Tax Saving) Term Deposit Scheme:

      Rate of Interest – 7.00% per annum for general public and 7.60% per annum for senior citizens.

    3. Special Term Deposit Scheme for HFCs:

      Rate of Interest – 7.25% per annum.

    FAQs on National Housing Bank Fixed Deposit

    1. 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.

    2. Are fixed deposits offered by NHB taxable?

      Yes. In case the interest on the FD is equal to or more than Rs. 10000 in a year, income tax at 10% is deducted. However, if the interest received in a year is more than Rs. 10000 and the PAN number has not been provided then a tax of 20% on the interest received is levied.

    3. 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.

    4. 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.

    5. 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.

    6. Does National Housing Bank allow premature withdrawals?

      Yes, premature withdrawals are allowed by National Housing Bank subject to certain terms and conditions.

    7. 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.

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    National Housing Bank Fixed Deposit Reviews

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