HDFC Bank FD Rates

HDFC has established itself as one of the country's leading financial services providers owing to its excellence in service and vast distribution network. In addition to providing world-class savings services, the HDFC Bank also specialises in offering investment options such as Fixed Deposits. The scheme is offered at a fixed interest rate for a predetermined investment tenure. Investors can open a fixed deposit account for a tenure ranging from 7 days to 10 years. The interest rate for such schemes ranges from 2.50% to 5.50% per annum.

Further, senior citizens can also enjoy an additional rate of 0.50% per annum on investment tenures of 7 to 5 years. For a tenure ranging from 5 to 10 years, the investor will get an additional interest rate of 0.75% per annum. This blog will look at the different HDFC fixed deposit types, interest rates, features, and advantages.

Classification of HDFC Fixed Deposit with Benefits

You can invest in an HDFC Fixed Deposit with a minimum amount of Rs. 5,000. HDFC FD accounts are convenient to open and easy to liquidate. Given below are the different types of HDFC Fixed Deposits:

1. Regular Fixed Deposits

HDFC offers regular fixed deposit options to its customers, enabling them to earn higher interest on their savings with increased security and flexibility. Given below are some of the features of the regular fixed deposits offered by HDFC bank:

• You can increase income owing to compound interest and the reinvesting of principal amount and interest
• You can make up for any shortfalls in your account by transferring funds from any linked FD schemes
• You can use the Super-Saver facility to avail an overdraft facility to deal with cash flow issues 

2. HDFC Bank SureCover FD

This innovative FD scheme offered by HDFC bank provides the investor with life insurance coverage equal to the FD amount for the 1st year. Given below are some of the features of this fixed deposit scheme:

• The minimum investment amount is Rs 2 lakhs, while the maximum amount is Rs. 10 lakhs
• Flexible tenure ranging from 1 year to 10 years
• The interest rate offered for this scheme is the same as for Regular Fixed Deposits

3. HDFC Bank HealthCover FD

This investment scheme offered by HDFC bank offers assured returns and comprehensive health insurance cover. Following are some of the features of the HDFC Bank HealthCover FD:

• The minimum investment amount for this scheme is Rs 5 lakhs, while the highest amount is Rs.1.99 crore
• The investment tenure for this scheme ranges from 1 year to 10 years 
• This scheme offers the same rate of interest as that of a Regular Fixed Deposit

4. Five-Year Tax Saving Fixed Deposit

With this fixed deposit scheme, the investor can enjoy the dual benefit of tax savings and compounding interest. Investors of this scheme can take advantage of the following features:

• Tax saving element under Section 80C of the Income Tax Act
• The investment amount ranges from Rs.100 to Rs. 1.5 lakhs in a financial year
• Investors get a monthly or quarterly interest payout

5. FCNR Deposits

The FCNR deposits enable the investor to accrue Indian interest rates on foreign currency while safeguarding against market fluctuations. Following are some of the features of an HDFC bank FCNR Deposit:

• Investors can hold their investment in up to 6 different currencies
• You can fully repatriate the interest and principal amounts 
• You can enjoy tax exemption on the entire deposit amount

6. Overdraft Against Fixed Deposits 

With this fixed deposit, you can instantly avail 90% overdraft on your investment amount. Given below are some of the features and characteristics of this fixed deposit scheme:

• You can link this FD scheme to your savings account
• You can avail the overdraft facility to compensate for cash flow issues 
• You will be required to pay interest on the withdrawn amount, only for the time period it is used

7. Non-withdrawable Deposits 

HDFC bank Non-withdrawable Deposits is one of the safest investment options that offer higher rates of returns as compared to regular FD options. Given below are some of the features of this scheme that make it an attractive investment option:

• The investor can opt for a monthly/quarterly payout option
• You can avail an overdraft of up to 90% of the FD amount
• Grow additional income via compounding interest and reinvesting deposits

Additional Features of HDFC Fixed Deposits

Listed below are some of the additional features of an HDFC bank fixed deposits that make them one of the most sought-after investment options:

• You can leverage the HDFC fixed deposit to obtain loans and credit cards at nominal interest rates.
• You can take advantage of online benefits like booking an FD, liquidating deposits, appointing nominees, and obtaining fixed deposit advice.
• You can gain additional returns via compounding interest and reinvesting the principal amount and interest earned during the investment tenure.
• Customers can even avail of the Sweep-in facility, using which the investor can transfer funds from the FD to a savings or current account. 
• The investor can leverage the Super Saver facility to use the funds in their savings or current accounts to utilise an overdraft facility. 

How to Choose the Right Fixed Deposit? 

What is the best-fixed deposit option for me? What should I consider before investing in a fixed deposit scheme? If these are some of the questions that arise in your mind, then you should go through the points discussed below. The following are some of the things you should keep in mind before choosing a suitable fixed deposit product:

Tenure of Investment 

The interest rate offered on fixed deposits varies according to the investment tenure. Usually, FD schemes with longer investment periods offer higher interest rates. However, longer tenure means your money is locked in for a longer period, compromising the scheme's liquidity. So if you’re looking to invest to achieve your short-term goals, investing in FD schemes with shorter tenures is recommended. The tenure for FDs usually ranges from 7 days to 10 years, and you can choose as per your requirement. It is advisable to choose a bank that offers flexible tenures.

Premature Withdrawal

Before choosing a fixed deposit option with any bank, it is advisable to go through the terms and conditions regarding premature withdrawal. Usually, the clauses related to premature withdrawals are available on the company website. Typically banks deduct a certain penalty on premature withdrawal and provide an option for liquidity.

Interest Rate

The interest rate offered on fixed deposits is the major factor to consider when choosing a suitable fixed deposit option. The higher the interest rate, the higher the returns you will receive from your investments. So it is advisable to choose a provider that provides a higher interest rate on their FD schemes.

In addition to the interest rates, banks also offer other benefits like availing of a loan against your fixed deposit. Some banks also offer an auto-renewal or overdraft facility, enabling high liquidity for deposited funds. 

Advantages of HDFC Bank Fixed Deposit

HDFC fixed deposits have been one of the most sought-after investment tools in the country. And there’s a good reason for it. HDFC bank fixed deposits have evolved to become highly flexible and versatile with a host of attractive benefits:

Fixed Returns

An HDFC fixed deposit is guaranteed to offer fixed returns throughout the investment period. The interest rate applicable when you start an FD remains the same throughout the investment period. Even if the interest rates go down in the broader market, it will not impact your Fixed Deposit. Therefore, you will not have to be concerned about the ups and downs of the market.

Hassle-free Investment

If you have a savings account with the bank, you can start an FD account with just a few clicks or by visiting the nearest branch. Once you start an FD account, you will not be required to worry about it till it matures. You can set standing instructions with the bank to auto-renew upon maturity or credit the proceeds to your account.

Flexibility

Contrary to popular opinion, Fixed Deposits are highly flexible investment options. With HDFC fixed deposits, you can get an overdraft facility for up to 90% of the fixed deposit amount, the interest will be charged only on the amount you have used. You can use features like the sweep-in to maximise your returns. The funds will only be withdrawn if a request for payment cannot be fulfilled from your savings or current account. 

Tax Saving Benefits

The HDFC bank fixed deposits can be used to reduce your tax liability for a given financial year. You can enjoy the tax-saving benefits of the five-year tax-saving FD, as stated under Section 80C of the Income Tax Act.

Eligibility Criteria for HDFC Fixed Deposits

The below-given entities/individuals are eligible to invest in an HDFC fixed deposit product:

• Indian Resident 
• Sole Proprietorship Firms
• Partnership Firms
• Member of HUFs
• Limited Companies
• Trusts

Documents Needed for HDFC Fixed Deposits

Given below are the set of documents required to start investing in HDFC fixed deposits:

• Government-approved identity and address proof documents
• PAN Card
• Form 15G/15F to claim TDS exemption
• Latest passport-size photograph

How is Interest Calculated on HDFC Fixed Deposits?

Given below are some of the different ways used to calculate the interest on HDFC fixed deposits:

• The interest is computed quarterly for term deposits with tenure lower than six months and a quarterly payout option.
• For term deposits with tenure below six months with a monthly interest payout option, the interest is considered for the quarter and paid out monthly at a discounted rate.
• For the fixed deposit having a tenure of fewer than six months with an interest reinvestment option, the total interest for the quarter is added to the principal amount of the subsequent quarter and the interest is calculated on the total amount.
• Simple interest is paid for FD with tenure equal to or more than six months.

How to Open an HDFC Bank FD Account?

You can open an HDFC Fixed Deposit account online as well as offline. Given below are the methods to do so:

Online Method

Step 1: Visit the official HDFC bank website and log in by entering the username and password.

Step 2: Click on the ‘Open Fixed Deposits’ option under the ‘Accounts’ sub-menu under the ‘Request’ section.

Step 3: Fill in all the necessary fields, such as the name of the branch, tenure range, deposit amount, and nomination details. Click on ‘Continue’.

Step 4: Cross-check all the details and click on ‘Confirm’.

Step 5: Once the FD booking is confirmed, a message will be displayed on the screen.

Offline Method

Step 1: Visit the nearest HDFC bank branch.

Step 2: Get in touch with a bank executive and ask for an FD application form.

Step 3: Fill out the form with all the required details. 

Step 4: Submit all the required supporting documents, and deposit the funds.

Step 5: The customer will receive an FD receipt upon booking confirmation.