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 RD Interest Rates is available to its customers with a host of benefits. The customers can open an HDFC recurring deposit account for a minimum term of 6 months to a maximum of 120 months. An HDFC recurring deposit account allows the customers to earn interest on the principal 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 HDFC recurring deposit account. Based on the term of the deposit, customer’s age, and other factors, the customers can earn an interest of 6.25% up to a maximum of 7.00%.
HDFC Recurring Deposit Interest Rates
|Tenure||Regular RD Interest Rates||Senior Citizen RD Interest Rates|
*The above interest rates are for investments less than Rs.1 crore in p.a.
Important Information to Note for HDFC Recurring Deposit Scheme
Some of the important details regarding an HDFC recurring deposit account are mentioned in the table below:
|Minimum Amount to be Deposited||Rs.1,000|
|Tenure||6 months to 120 months|
|Additional Interest rate for Senior Citizen||0.50%|
|What is the Maximum Interest Rate Offered by the Bank and for What Tenure?||For all term periods between 12 to 24 months, the rate of interest offered is 7.25% which is the maximum for a regular citizen.|
|TDS||The tax to be deducted from the amount earned as interest from HDFC RD account depends on the tax slab to which the applicant belongs.|
Eligibility Criteria for HDFC Recurring Deposit Scheme
The following individuals or entities are eligible for opening an HDFC recurring deposit account:
- Any individual who is a resident.
- HUF or Hindu Undivided Family.
- Public and private limited organisations.
- Societies and trusts.
Documents Required for HDFC Recurring Deposit
The documents required for opening an HDFC recurring deposit account are:
- The form through which the applicant can apply for an HDFC recurring deposit account.
- An identity proof of the applicant. The documents that can be accepted as ID proof are copy of passport, PAN card, Aadhar card, Voter ID, Driving licence, Ration card, Government ID card, Senior citizen card.
- An address proof of the applicant. The documents that can be accepted as address proof are copy of passport, Aadhar card, electricity bill, phone bill, bank statement with cheque.
- Passport size photographs of the person applying for a recurring deposit account.
How to Apply for Recurring Deposit in HDFC Bank?
The HDFC Netbanking users can open Recurring Deposit 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 Account?
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.
Premature Withdrawal of HDFC Recurring Deposit
When an HDFC Recurring Deposit account holder wants to withdraw money deposited in the bank account prematurely the interest rate will be applicable as follows:
- Either the interest rate that the depositor was earning on the principal amount or the interest rate that is applicable for the period for which the money was deposited in the account, whichever is lower.
- HDFC bank will also charge a 1% penalty fee on premature withdrawal of deposited amount in the recurring deposit account.
Get the Highest HDFC Recurring Deposit Interest Rates
- HDFC recurring deposit account offers attractive rates of return depending on varying tenures. For the minimum period of 6 months, the rate of interest offered is 6.25%.
- For the term period ranging from 12 months to 60 months, the HDFC recurring deposit account offers the highest interest rate of 7.00% for regular citizens.
- It drops down to 6.00% for the term periods 90 and 120 months.
Short-Term HDFC RD Interest Rates
- The short-term period for an HDFC recurring deposit account lasts from 6 months to a year.
- The interest rate offered by the bank for a 6-month period is 6.25%, for a 9-month period is 6.40% and for a 12 month period is 6.85%.
HDFC Medium-Term and Long-Term Recurring Deposit Interest Rates
- For medium-term deposit which ranges from more than 12 months to less than or equal to 60 months, HDFC recurring deposit scheme offers an interest rate of 7.00% for a regular citizen.
- For a long-term deposit which ranges from more than 5 years to less than or equal to 10 years, HDFC recurring deposit scheme offers an interest rate of 6.00% for a regular citizen.
Senior Citizen HDFC RD Rates
- The senior citizen rates offered by HDFC recurring deposit account is 0.50% greater than the rate for a regular citizen.
- The senior citizen rate of interest offered by HDFC recurring deposit scheme for a short-term period is 6.75% for a 6-month period, 6.90% for a 9-month period, and 7.35% for a 12-month period.
- The senior citizen rate of interest offered by HDFC recurring deposit scheme for a medium-term period is 7.50%.
- The senior citizen rate of interest offered by HDFC recurring deposit scheme for a long-term period is 6.50%.
HDFC RD Rates for NRI
- The NRI rates offered by HDFC recurring deposit account starts from a term period of 12 months. The rate of return offered for the same tenure is 6.85%.
- The NRI rates offered by HDFC recurring deposit account for a medium-term period is 7.00%.
- The NRI rates offered by HDFC recurring deposit account for a long-term period is 6.00%.
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
- Recurring Deposit
- Compare Recurring Deposit Rates of HDFC Bank with Other Banks and Institutions
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