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HDFC Recurring Deposit (RD) Interest Rates

HDFC Bank offers recurring deposit schemes with attractive interest rates to its customers. Incorporated in 1994, HDFC Bank Ltd. is an Indian banking and financial services company and the second-largest private sector bank by assets. Usually, RD interest rates in HDFC range from 3.50% to 6% per annum. One can open an HDFC recurring deposit account with a minimum deposit of Rs. 1,000 to Rs. 14, 99, 900 with tenures ranging from 6 months to 10 years.

HDFC RD Interest Rates 2022

Tenure RD Rates for General Citizens RD Rates for Senior Citizens
6 months 3.50% 4.00%
9 months 4.40% 4.90%
12 months 4.90% 5.40%
15 months 5.00% 5.50%
24 months 5.00% 5.50%
27 months 5.15% 5.65%
36 months 5.15% 5.65%
39 months 5.35% 5.85%
48 months 5.35% 5.85%
60 months 5.30% 5.80%
90 months 5.50% 6.00%
120 months 5.50% 6.00%

Features of HDFC Recurring Deposit

The features of recurring deposit offered by HDFC are as follows –

  1. Monthly investment amount: An individual who wishes to open an RD account with HDFC needs to maintain a minimum of Rs. 1000 as a monthly investment. Such an amount can be extended up to Rs. 14,99,900.
  2. Minimum tenure: Indian citizens of any age needs to open an RD account for a minimum tenure of 6 months. The minimum tenure for NRIs is 12 months or 1 year.
  3. Fixed Instalment: Once the monthly installment amount has been decided upon, it cannot be changed during the course of maturity.
  4. Overdue payments: If an individual consecutively delays on 6 payments, HDFC reserves the prerogative to cancel that particular account.
  5. Partial Investments: HDFC Recurring Deposit does not entertain any partial payment of monthly installments.
  6. Conversion: An individual can also decide to convert his HDFC RD into a Fixed Deposit before maturity.

How to Calculate the Maturity Amount on HDFC Bank RD?

The formula for calculating the RD amount is:

A = P*(1+R/N)^(Nt)

Where R stands for rate of interest, P is the principal deposited, n is the tenure in months and t is the applicable tenure.

How to Open a Recurring Deposit Account in HDFC?

An HDFC recurring deposit account can be opened in two ways:

  • By visiting the branch directly
  • Via Net Banking

If you already have an HDFC account, you can use your net banking credentials to log in to your account and open an e-RD within a couple of minutes. If you are not an HDFC account holder, you need to open an account first. Once your account is active, you can log in and open an e-RD right away.

With additional benefits under schemes like the HDFC dream deposit, one gets an edge over typical recurring deposit accounts. Also, the HDFC RD interest rates 2022 are almost equivalent to that of fixed deposit rates which are again considered as an ideal parameter to invest in a recurring deposit. However, it is recommended to read all the terms and conditions before proceeding with any investment.

Tax Exemptions on HDFC RD

When the interest collected on FDs and RDs across all of the bank’s branches reaches Rs.40,000 in a fiscal year, the tax will be deducted at source (TDS) (Rs.50,000 for senior citizens). TDS will be recovered from the linked current/savings account to the RD account. If the existing/savings account is not kept up to date, the TDS will be deducted from the RD interest received. If your annual income does not exceed the basic exemption ceiling, you can request that your bank not deduct tax at source by submitting Form 15G/15H.

Eligibility

Here are the eligible applicants who can open an RD:

  • Residents
  • Minors over the age of 10
  • NRIs and IPOs
  • Organizations
  • Sole Organizations
  • HUFs
  • Trusts
  • Companies
  • Partner Firms

Documents Required

In order to open an HDFC RD the following documents are required:

  • An application form
  • KYC Documents
  • JYC documents for partnerships
  • KYC and HUF declaration for HUFs
  • Passport size photo

HDFC Bank RD Premature Withdrawal Facility

  • The HDFC bank Recurring Deposit account can be liquidated by either visiting the branch directly or via net banking.
  • In case you are opting for premature withdrawal, the full interest amount won’t be provided
  • The principal amount along with some partial interest amount (depending on the terms) will be credited.

Nomination facility for Recurring Deposits

  • If the RD account is opened in a single person’s name, either a new nominee or an existing nominee who has already been added to the base savings account can be assigned.
  • In case the RD is in a joint name, the selected nominee should be the same as the one in the base savings account.
  • HDFC Net Banking nomination facilities can be used in both cases.

Types of HDFC Recurring Deposit Schemes 

  1. HDFC Recurring Deposit: Under this RD scheme, one can earn interest rates the same as that of the HDFC fixed deposit scheme. This account can be opened with a minimum amount of Rs. 1000.
  2. HDFC Dream Deposit: Under this recurring deposit scheme, you have the flexibility to deposit money whenever it is available. Moreover, no prepayment penalty charges will be levied if the amount is withdrawn before the maturity date.
  3. HDFC NRE RD Scheme: The bank also allows NRIs to open NRE recurring deposit account (Non-Resident External account). For an NRE RD account, the minimum tenure is 1 year while the maximum is 10 years. The NRI RD account interest rates have been illustrated below:
Tenure Interest Rates for NRIs (p.a.)
6 Months N.A.
9 Months N.A.
12 Months 5.10%
15 Months 5.10%
24 Months 5.10%
27 Months 5.15%
36 Months 5.15%
39 Months 5.30%
48 Months 5.30%
60 Months 5.30%
90 Months 5.50%
120 Months 5.50%

Benefits of Opening an HDFC Recurring Deposit Account

  • A minimum amount of just Rs.1000 is needed to open the account.
  • The RD interest rates offered by the bank is the same as fixed deposit rates
  • The bank also offers a nomination facility so that you can nominate someone to redeem the maturity amount in case of the account holder’s demise
  • No premature withdrawal penalty is charged under the Dream Deposit plan.
  • Senior citizens can avail of additional interest rates
  • There’s a lock-in period of 1 month from the date of account opening. During this time, one cannot withdraw the deposit money.

Note: The bank can close the RD account in case you fail to pay the monthly installments frequently

FAQs on HDFC RD Rates

Q1. When is the interest paid for HDFC RD?

The interest of an RD account is paid upon maturity only. There are no monthly or quarterly interest payouts.

Q2. Can I change the installment due date and RD tenure?

No. The installment due date and the tenure cannot be changed.

Q3. Does the bank deduct TDS on the interest payable?

Yes, TDS is deducted if the interest amount exceeds Rs. 40,000 (Rs. 50,000 for senior citizens) in a calendar year.

Q4. Can we make partial payments on recurring deposits?

No, partial payments on recurring deposits are not available.

Q5. Is it possible that my account would be harmed if I fall behind on my payments?

If you fail to pay your installments on a regular basis, or if a minimum of six installments falls behind, the bank reserves the right to shut your RD account. The interest rate on such accounts is comparable to the bank’s early withdrawal policy.

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