HDFC Bank is a banking and financial services company in India, with more than 5300 branches and 13,500 ATMs across the country. It was founded in 1994 and has its headquarters situated in Mumbai, Maharashtra. It currently employs more than 111,000 individuals. Based on market capitalisation, HDFC is the largest bank in India.
While the company offers various financial products, HDFC fixed deposit is especially popular with the Indian crowd. HDFC makes investment easy by providing a range of FD schemes, encompassing needs of Indians belonging to different age groups.
In this article
Benefits of Choosing HDFC Bank FD
The reasons mentioned below ensure profitability for customers investing in HDFC FD.
- HDFC offers a hassle-free net banking method for booking deposits.
- Investors are free to nominate family members or relatives into the FD, to ensure disbursal of funds to the next of kin in the case of unforeseen events.
- Interest rates for HDFC Bank FD are higher when compared to the interest liable on the bank’s savings account.
- Investors can avail loans worth up to 90% of the total FD valuation.
Eligibility Criteria for HDFC Bank FD
Investors must meet the following requirements when looking to deposit their money into HDFC fixed deposit online-
- Indian resident
- Sole proprietorship enterprise
- Limited companies
- Hindu Undivided Family (HUF members)
- Partnership firms
Documents Required for HDFC Bank FD
To open a fixed deposit account with HDFC Bank, an individual needs to furnish the following documents.
- Proof of Identity
- Aadhaar card
- Voter ID
- PAN card
- Driving license
- Ration card with photo
- Any government-issued ID card
- Proof of Address
- Electricity bill
- Bank statement including cheque
- ID or license issued by the Post Office
- Telephone bill
HDFC Bank FD Rates
Term deposits with tenures between 2 years and 3 years provide a 5.35%% rate of interest. HDFC Bank fixed deposits offer higher interest to senior citizen investors. At present, senior citizens are eligible to receive interest of FDs at annual rates ranging between 3.21% and 6.00%.
Last updated: 3rd Sept 2020
|Tenure||FD Rates||Senior Citizen FD Rates|
|7 days to 14 days||2.75%||3.25%|
|15 days to 29 days||3.00%||3.50%|
|30 days to 45 days||3.25%||3.75%|
|46 days to 90 days||4.00%||4.50%|
|91 days to 6 months||4.10%||4.60%|
|6 months 1 day to 9 months||4.50%||5.00%|
|9 months 1 day to 364 days||4.75%||5.25%|
|1 year 1 day to 2 years||5.25%||5.75%|
|2 years 1 day to 3 years||5.35%||5.85%|
|3 years 1 day to 5 years||5.50%||6.00%|
|5 years 1 day to 10 years||5.50%||6.00%|
Different Types of HDFC Bank FD Schemes
- Regular Fixed Deposit – These schemes come with tenure options ranging from 7 days to 10 years. Premature withdrawal can be done by paying a penalty fee. The income earned through this FD scheme is taxable under the Income Tax Act of 1961.
- HDFC Tax Saving Fixed Deposit – This scheme comes with a 5-year lock-in period, which means that investors cannot opt for shorter or longer tenures when investing in such market devices. Deposits can range between Rs. 100 and Rs. 1.5 Lakh. This particular HDFC Bank FD scheme does not allow premature withdrawal facilities. Further, investors cannot avail loans against HDFC Tax Saving Fixed Deposit schemes.
- Senior citizen FD – Individuals above the age of 60 years are eligible to earn a higher interest benefit of up to 0.50% on total investment.
Premature Withdrawal Terms and Conditions
Premature withdrawal refers to closing the HDFC fixed deposit account before completion of the stipulated tenure. Consumers can withdraw the deposited fund from fixed deposits after paying a 1% penalty fee for the same.
However, those who have invested in HDFC’s Tax Saving Fixed Deposit are ineligible for such withdrawal before the mandatory 5-year lock-in period is complete.
Special Forms to Fill
Interest earnings from HDFC Bank fixed deposit are taxable. However, investors can avail special tax deductions if their total interest income from all investment schemes is less than Rs. 40,000 for one financial year or Rs. 50,000 for senior citizens.
To take advantage of such tax exemptions and reductions, general and senior citizens must fill up Form 15G and Form 15H respectively before submitting the same to the concerned financial institution.
Keep in mind that FD investors are only eligible to receive tax exemptions if their interest earnings are below a specific tax slab determined by the Indian government.
Loan against HDFC Bank Fixed Deposits
A fixed deposit investor is eligible for credits against an HDFC FD. The bank approves loans of up to 90% the FD’s value in most cases. NRE and NRO FD account holders can avail such extensive loan quantum as well. Only Foreign Currency non-repatriable fixed deposits investors are eligible for a loan of up to 70% of FD worth.
Keep in mind that such loans are only available to investors operating Regular Fixed Deposit schemes and not to those investing in HDFC Tax Saving Fixed Deposit product.
- Which tenure for HDFC fixed deposit offers the highest returns?
Investors depositing the money for a period ranging from 2 years 1 day and 3 years are eligible to receive the maximum interest on their investment, at 6.85% per annum.
- Do senior citizens receive additional interest on HDFC fixed deposit?
Yes. HDFC offers 0.50% extra interest to investors aged over 60 years. You must present documents to prove your age to avail the enhanced FD rate as a senior citizen.
- Can investors change the maturity period for an on-going fixed deposit?
No. Investors can only select the FD tenure before initiating the investment. Once it starts, no further change is allowed. Those who want to increase or decrease the HDFC Bank FD tenure can start a new investment with their preferred period.
- Is investment in FD possible without furnishing PAN details?
No. Providing investor PAN detail at the start of the investment is vital. Failure to furnish the document can result in the following.
- Tax deduction forms will be considered void
- Penalty rate of 20% will be applicable when deducting taxes
- Investors cannot avail TDS credit
- TDS certificate will not be issued
- Is it necessary to be an existing customer of HDFC to invest in the bank’s fixed deposit schemes?
No. Both existing and new customers can invest in HDFC FD. However, to apply for term deposits online, customers need to possess a valid username and password.
- What are the charges for opening an FD account with HDFC Bank?
There are no additional charges for investing in an HDFC fixed deposit online. Investors only need to transfer the lump sum amount to be invested into the account.
- What is the minimum investment one can deposit for a regular HDFC Bank fixed deposit?
For a regular FD investment, customers can start with just Rs. 5,000.
- What is the minimum investment for HDFC Tax Saving Fixed Deposit?
The 5-year investment plan allows investments between Rs. 5,000 and Rs. 1.5 Lakh.
- Who is eligible for tax deductions on their FD earnings?
Individuals whose FD earnings are lower than the taxable income are eligible for Income Tax Deductions on the same. Submission of Form 15G/15G is mandatory to avail such benefits.
- What is the upper limit for standard HDFC fixed deposit account?
HDFC FDs do not have any upper limits. However, interest rates change based on how much you invest. For instance, rates levied on up to Rs. 1 Crore investment are different in comparison to rates corresponding to relatively higher investments.