HDFC Bank Fixed Deposit Rate

HDFC Bank FD Interest Rates - Less Than 2 Cr.

Disclaimer: The interest rates on fixed deposits given above are as of 29/02/2024. For exact interest rates, contact the bank.

Features and Benefits of HDFC Fixed Deposits

Features:

• Minimum deposit: ₹5,000
• Flexible tenures: Choose a timeframe that suits your financial goals, ranging from short-term to long-term deposits.
• Assured returns: Earn guaranteed interest on your deposit, offering predictability and security for your investment.
• Compound interest: Grow your earnings further by reinvesting the interest earned along with the principal amount.
• Sweep-in facility: Link your FD to your savings account and automatically transfer funds to maintain a minimum balance, preventing account charges.
• Super saver facility: Get an overdraft facility against your FD to access funds without breaking the deposit, allowing you to meet unexpected financial needs.
• Online management: Conveniently open, manage, and close your FD account through HDFC Bank's online platform.

Benefits:

• Security: HDFC Fixed Deposits are a safe investment option, as they are backed by a reputable financial institution.
• Steady income: Earn predictable and reliable income throughout the chosen tenure of your deposit.
• Liquidity: Access your funds before maturity, although penalties may apply.
• Tax benefits: Explore tax-saving FD options to potentially reduce your tax liability.

Types of HDFC Bank FD Schemes

HDFC Bank offers a variety of Fixed Deposit (FD) schemes to cater to different financial goals and needs. Here are the main types:

1. Regular Fixed Deposit: This is the most basic type of FD, offering a fixed interest rate for a chosen tenure. It is suitable for individuals seeking guaranteed returns and security for their savings.

2. Tax Saving Fixed Deposit (5-year): This FD scheme allows you to save tax under Section 80C of the Income Tax Act, with a lock-in period of 5 years. It is ideal for individuals looking to save for long-term goals while availing tax benefits.

3. HDFC Bank HealthCover FD: This unique FD scheme provides life and accident insurance coverage along with fixed deposit benefits. It is suitable for individuals seeking financial protection in addition to earning interest on their savings.

4. Goal Based Fixed Deposit Offer: This limited-period offer provides slightly higher interest rates for specific tenures, allowing you to plan and achieve your financial goals more effectively.

5. FCNR (Foreign Currency Non-Resident) Fixed Deposit: This scheme is designed for Non-Resident Indians (NRIs) to earn interest on their foreign currency deposits in Indian rupees. It offers competitive interest rates and various tenure options.

6. Recurring Deposit (RD): While not technically an FD scheme, RDs are a popular option for regular savings. You can invest a fixed amount every month over a chosen tenure to inculcate a savings habit and earn interest on the accumulated amount.

Eligibility Criteria

To open an HDFC Bank Fixed Deposit, you need to meet the following eligibility criteria:

• Individuals: Any resident individual of India can open an FD account. This includes minors (with a guardian's consent) and senior citizens.
• Entities: Various entities besides individuals are also eligible, including:
  • Hindu Undivided Families (HUFs)
  • Sole proprietorship firms
  • Partnership firms
  • Limited companies
  • Trust accounts

Additional Requirements:

• Know Your Customer (KYC) documents: You will need to provide valid KYC documents as per the bank's regulations. This typically includes proof of identity, address, and photography.
• Minimum deposit amount: The minimum deposit amount varies depending on the chosen scheme and branch location. It usually starts from ₹5,000 for regular FDs in urban branches.

Special Considerations:

• Non-Resident Indians (NRIs): While resident Indians can open regular FDs, NRIs have specific FD schemes like FCNR (Foreign Currency Non-Resident) deposits.
• Minors: Minors can open FDs with a legal guardian's consent. The guardian will manage the account until the minor reaches the age of majority.

Documents Required

The documents required to open an HDFC Bank Fixed Deposit (FD) will depend on your existing relationship with the bank and whether you are an individual or entity opening the account. Here's a breakdown:

For Existing HDFC Bank Savings Account Holders:

• Proof of identity:
• PAN card (mandatory)
• Aadhaar card
• Passport
• Driving licence
• Voter's ID card
• Government ID card (other than the above)
• No additional documents required (your KYC is already verified)

For Individuals who do not Have an Existing HDFC Bank Account:

• Proof of identity: (same options as above)
• Proof of address:
• Electricity bill
• Telephone bill
• Water bill
• Ration card
• Passport (with address)
• Bank statement of another bank account
• Lease agreement (if applicable)
• PAN card (mandatory)

Additional Documents for Entities (Apart From Individuals):

• Proof of existence:
• Certificate of incorporation (companies)
• Partnership deed (partnership firms)
• Trust deed (trust accounts)
• Proof of authorized signatories:
• ID proof of authorized signatories
• Board resolution (for companies)

Disclaimer: The documents mentioned above are in general. Please contact the bank for any additional documents required.

How to Invest in HDFC FD

1. Choose Your FD Scheme:

• Research and understand the different types of HDFC Bank FD schemes offered, each catering to various needs and goals (see previous response for details).
• Consider factors like interest rates, tenure options, tax benefits, and any additional features before making your choice.

2. Gather Required Documents:

• Depending on your existing relationship with HDFC Bank and whether you are an individual or entity, assemble the necessary documents (see previous response for details).

3. Choose Your Investment Method:

• Online: Existing HDFC Bank customers with NetBanking can conveniently open FDs online through the bank's website or mobile app.
• Branch visit: You can visit any HDFC Bank branch and meet a representative to initiate the FD opening process.

4. Open Your FD Account:

• Online: Follow the on-screen prompts on the HDFC Bank website or mobile app, provide your details, choose the desired scheme, and transfer the investment amount.
• Branch visit: Fill out the application form provided by the bank representative, submit the required documents, and make the initial deposit.

5. Fund Your FD:

• Online: Utilize the available online payment methods like Internet banking or debit card transfer to deposit the desired amount.
• Branch visit: You can deposit cash, cheque, or transfer funds from your existing HDFC Bank account.

6. Receive Confirmation:

• Once your FD account is opened and funded, you will receive confirmation through email or physical documents depending on your chosen method.

Tax on HDFC Bank Fixed Deposit

The taxation of interest earned on HDFC Bank Fixed Deposits (FDs) depends on two main factors:

1. Your Income Tax Slab: India operates a progressive tax system, meaning higher income earners pay a higher percentage of their income in taxes. Your tax slab determines the rate at which you will be taxed on your FD interest.

2. Interest Amount: The Indian government has a Tax Deducted at Source (TDS) rule for FD interest.

Here's a breakdown of how taxes apply:

Scenario 1: Interest Income Below Threshold

• If your total FD interest income from all banks in a financial year is below ₹40,000 (₹50,000 for senior citizens), no TDS will be deducted.
• You will need to declare this income while filing your income tax return and pay tax based on your applicable tax slab.

Scenario 2: Interest Income Above Threshold

• If your total FD interest income from all banks in a financial year exceeds ₹40,000 (₹50,000 for senior citizens), TDS will be deducted at 10% by the bank.
• This deduction is regardless of your tax slab.
• While filing your IT return, you can:
• Claim a refund if the TDS deducted is higher than your actual tax liability based on your income slab.
• Pay additional tax if the TDS deducted is lower than your actual tax liability.

Reducing/Avoiding TDS:

• You can submit Form 15G (for individuals below 60 years) or Form 15H (for senior citizens) to the bank if your annual income is below the taxable limit. This will instruct the bank not to deduct TDS.
• Note: Submitting these forms requires proper verification and documentation.

Tax Saving FDs:

• HDFC Bank offers a 5-year Tax Saving Fixed Deposit (FD) scheme. It allows you to claim tax deductions of up to ₹1.5 lakh under Section 80C of the Income Tax Act.
• The interest earned on this specific scheme is not taxed, offering an additional benefit.

HDFC Fixed Deposit - Premature Withdrawal

If you withdraw your fixed deposit before maturity, a penalty fee of 1% will apply. Additionally, the interest earned will be calculated based on the lower of two rates:

• The base rate for the original deposit term.
• The base rate for the period the deposit remained with the bank.

Exceptions: There's no penalty for withdrawals made between 7 and 14 days after booking the deposit.

How to Calculate HDFC FD Interest Rates

Here's how to use the calculator:

1. Enter the principal amount: This is the initial amount you plan to invest in your FD.

2. Select the tenure: Choose the desired time period for your deposit, ranging from days to years.

3. Choose the interest rate: You can either select a pre-defined interest rate based on your chosen tenure or enter a specific rate if you have one.

4. Click "Calculate": The calculator will display the estimated maturity amount, which includes the principal amount and the interest earned.

FAQs On HDFC Bank FD Interest Rates: