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.
|Tenure||RD Rates for General Citizens||RD Rates for Senior Citizens|
The features of recurring deposit offered by HDFC are as follows –
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.
An HDFC recurring deposit account can be opened in two ways:
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.
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.
Here are the eligible applicants who can open an RD:
In order to open an HDFC RD the following documents are required:
|Tenure||Interest Rates for NRIs (p.a.)|
Note: The bank can close the RD account in case you fail to pay the monthly installments frequently
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.