Being one of the largest private sector lenders in India, HDFC Bank is well-known for offering competitive interest rates on a broad range of financial products. When it comes to a Recurring Deposit account, HDFC Bank offers attractive interest rates with a host of benefits. The customers can open an HDFC RD account for a minimum term of 6 months to a maximum of 120 months. An RD account allows the customers to earn interest on the deposited amount at the maturity of the term. The deposits are made on a monthly basis through a standing instruction from the savings account to the RD account. Based on the term of the deposit, customer’s age, and other factors, the customers can earn an interest of 5.75% up to a maximum of 7.25%.
|Tenure||Regular RD Interest Rates (p.a)||Senior Citizen RD Interest Rates (p.a)||NRI RD Interest Rates (p.a)|
Key features of HDFC Recurring Deposits:
- Deposit Amount: An RD account can be opened for a minimum of Rs.1,000 up to a maximum of 14,99,900 as the monthly deposit amount.
- Term of Deposit: The account holder can choose to open an RD account for a term ranging from 6 months to 10 years.
- Switching to Fixed Deposit (FD): At the maturity of the RD account, it can be converted into an FD account.
- Interest Rate: The account holder can earn an interest ranging between 5.75% - 6.75% on the deposit value, senior citizens can earn an additional 0.50%.
- Nomination: The HDFC Netbanking users can add or edit the nominee details instantly.
How to Open an HDFC Recurring Deposit?
The HDFC Netbanking users can open an RD account by following these simple steps:
- Sign in to your account
- Locate Recurring Deposit menu on the left side of the screen
- Click on Open Recurring Deposit
- Choose the amount of deposit
- Choose the deposit term
- Use the drop-down options to complete the details
- Click on Continue to review the details and confirm to complete
- Your RD account details will be displayed on the screen and added to your Netbanking section
- The RD advice will be sent your mailing address within 3 - 4 working days.
How to Liquidate An HDFC Recurring Deposit?
If the account holder decides to close the RD account before the maturity, the following steps can be followed on the HDFC Netbanking section -
- Sign in to your account
- Click on Recurring Deposit menu listed on the left side of the screen
- Click on Liquidate RD
- Choose the RD account number
- Click on Continue
- Review the details and click on Confirm to liquidate
- The details of the RD liquidation will be displayed on the screen
The interest payable on such account will be lower of the base rate for the original / contracted term for which the RD account has been opened. The base rate is the rate applicable to an RD account of less than 1 crore as on the date of opening the account. If the account is closed within a month, no interest is payable apart from the principal amount.
Factors to Consider Before Opening an RD Account:
- Instalments: The instalment amount is chosen by the account holder at the time of opening the RD account which cannot be changed later. HDFC Bank doesn’t accept partial payment of instalment. The bank can close an RD account if more than 6 instalments are overdue. The interest rate on these types of accounts is subject to the premature liquidation policy of the bank.
- Lock-in Period: The RD account comes with a lock-in period of one month. If the account holder opts for a premature liquidation, he/she will only get the principal amount without any interest.
- Maturity: At maturity of the account term, the total earned interest along with the principal amount is credited to the account holder’s funding account provided all the due instalments are cleared. The maturity amount may change due to various factors such as due instalments, premature liquidation, new tax rules, etc.
- Tax Deducted at Source (TDS): The interest earned through an RD account is subject to TDS as per the Income Tax rules.
FAQs on HDFC Recurring-deposit
How do I add nominee details?
While creating the RD account through the HDFC Netbanking service, you will be provided with an option to select your nominee’s details. The nominee details are retrieved from the savings account which is used to fund the RD account.
What are the interest payout options?
The interest on an RD account is paid on the maturity only. There is no provision to get monthly, quarterly, etc. interest payouts.
How can I change the instalment due date?
The account holder doesn’t have the option to change the instalment due date or the tenure of the RD account.
How to set the RD instalment due date?
Depending on the date the RD account has been opened, the RD instalments will be debited on the same date for the subsequent month.
What happens when the instalments are not paid.
The maturity benefit is subject to the payments of all due instalments. If there are more than six consecutive due instalments, the bank can close the RD account under the premature withdrawal policy.
Can I earn additional interest for paying more than one instalment at once?
No, though you can choose to make a payment for more than one instalment at a time, you won’t be entitled to additional interest.
Does the RD account come with an overdraft facility?
Currently, there is no overdraft facility for an RD account.
Is it possible to liquidate an RD account before maturity?
Yes, premature withdrawal is allowed based on the terms and conditions of the RD account.
More you need to know about Recurring Deposit
- Recurring Deposit Interest Calculator
- HDFC Recurring Deposit
- Recurring Deposit
- Compare Recurring Deposit Rates of HDFC Bank with Other Banks and Institutions