HDFC Bank FD Interest Rate and Calculator

Fixed Deposits in HDFC Bank

The HDFC Bank is one of the leading private banks in the country which offers the best interest rates on the fixed deposits to its customers. The bank offers a range of fixed deposit schemes which are suitable to all the customers be it a minor citizen, regular citizens, senior citizens or even for Non – Resident Indians.

The individuals who wish to open a fixed deposit with the HDFC Bank can do so either by visiting the nearest bank branch or can opt for opening an account via online mode. By depositing money in term deposits one can save the money for future and the same is eligible for tax saving under Section 80C of Income Tax Act of 1961. An investment amount of up to Rs 1.50 lakhs per annum is eligible for tax saving under Section 80C.

Different Types of Fixed Deposit Available With HDFC Bank

Individuals having HDFC Bank account fixed deposit can open online within few steps. The interest rate on domestic deposit varies with the deposit amount. Below table provides interest rate depending on the amount.

Tax Saving Fixed Deposit

Individuals can open tax saving fixed deposit with HDFC bank and avail tax benefits on the same. The amount eligible under the scheme is Rs 150,000 which means one can avail tax benefits for the invested amount up to Rs 1,50,000.

Interest rate on tax saver fixed deposit will be applicable same as the current prevailing interest rates.However, TDS will be applicable for the amount exceeding Rs 10,000 per year.Make sure to update the PAN else TDS will be levied at 20 per cent instead of 10 per cent.

NRO Fixed Deposits

Nonresident Indians can open NRO fixed deposit which can be maintained in Indian rupees. NRI's can repatriate the interest earned on fixed deposit.

There is also the facility to avail overdraft up to 90% of the deposit.

The minimum amount an NRO Fixed Deposit can be opened with Rs 25,000/- and the amount required for Add-on fixed deposit is Rs 10,000/. Interest earned will be credited to NR0 Savings Account every quarter of the year.NRO fixed deposit can be opened jointly with a resident individual. Note that NRO funds cannot be used to create NRE or FCNR deposit.

NRE Fixed Deposits

The minimum amount required to open an NRE Fixed Deposit Account is Rs 25,000/- and the amount required for Add-on Fixed Deposits is Rs 10,000/-. HDFC NRE Fixed deposit holder will not get a cheque book or debit card.

NRE deposit holders can break deposit before the maturity period. NRE Deposits will be eligible for interest only if they hold it for a minimum period of one year. Funds held in NRE fixed deposit are exempted from income tax in India.

Fixed Deposits in HDFC Bank

Regular Fixed Deposit

• The fixed deposit can be opened by Indian residents, Sole Proprietorship Firms, Partnership Firms, Trust accounts, Hindu Undivided Families, Limited Companies.
• Minimum deposit amount is Rs 5,000.
• PAN is a must if the amount of deposit exceeds Rs 50,000.
• TDS will be deducted if the interest amount per annum exceeds Rs 10,000.
• To avoid TDS, investors have to submit Form 15G/15H at the beginning of fiscal year (April 1).
• Nomination facility is available on the term deposits.
• The account can be opened and operated through online mode.

5 Year Tax Saving Fixed Deposit

• Tenure of the deposit is 5 years.
• The minimum amount of deposit is Rs 100 and in multiples of Rs 100.
• The maximum amount of deposit per annum is Rs 1,50,000.

• Lock in period of the deposit is 5 years.
• The tax benefit is available in the scheme.
• In case of a joint deposit – only the first account holder will be eligible to claim tax benefits under Section 80C of the Income Tax Act.
• Tax Deducted at Source will be as per the Income Tax Regulations.
• Investors can open the account either by physically visiting the branch or via online mode.

How Interest Rates Move?

FD interest rates movement is largely a factor, which is not completely, but at least partially determined by the Reserve Bank of India. The country's central bank controls the repo rates or the rates at which the RBI lends money to banks. When this interest rates move higher, it only pushed FD interest rates in the economy higher. HDFC Bank like most other banks then lends money according to these rates. Over the last few years, we have seen interest rates in the economy falling. However, they are now moving higher, which tends to benefit retired individuals and those who look at this avenue for sustenance.

Important Notes For Resident HDFC Bank’s Customers

• The interest rates on fixed deposits of HDFC Bank is subject to vary from time to time purely at the discretion of the bank.
• Special rates are applicable only for Resident deposits.
• The interest rates on FD’s are calculated on a quarterly basis for all the deposits.
• For deposits whose tenure is less than 6 months, simple interest method is adopted for arriving at the maturity value.
• Cumulative interest or reinvestment interest is calculated during every quarter and the same is added to the principal amount during the end of the quarter.
• In case of monthly deposit scheme, interest will be calculated on the quarterly basis and will be paid monthly at a discounted rate over the standard FD rates.
• Tax Deducted at Source (TDS) will be deducted as per the Income Tax Act of 1961 at a regular interval of time (annual basis).
• The minimum term of a fixed deposit to earn interest rate stands at 7 days. 
• As interest rates are subject to change on a regular basis it is better to keep a tab on the same at the time of opening a new term deposit.
• In case of fixed deposits whose principal amount is Rs 5 crore and more, partial premature withdrawal and the sweep-in facility is not allowed.
• The NRE deposit will not earn any interest if withdrawn prematurely before a period of 1 year.
• The Senior Citizens Rates are applicable for only Resident Indians and the same does not apply for NRIs.

Interest on Term Deposits (FD) is Calculated as mentioned below:

• For less than 6 months tenure – Interest rates are calculated on a quarterly basis.
• For more than 6 months tenure – Simple Interest method is followed to arrive at the maturity value.
• Re-investment or cumulative interest is calculated during every quarter and the same is added to the principal amount to calculate the maturity value for the next quarter.
• For Monthly Deposit Schemes, the interest rate will be calculated on a quarterly basis and the same will be paid on monthly basis at a discounted rate over the Standard FD Rate.

Nomination Facility

Most of the fixed deposits in Indian Banks provide nomination facilities to its depositor who can, in turn, nominate anyone of his choice as the beneficiary of the fixed deposit scheme in the event of the death of the investor before the maturity period of the said fixed deposit scheme. The nominated individual is referred to as ‘Nominee’. Applicants who are interested to propose a nominee will have to fill in a separate nomination form as prescribed under the Banking Companies (Nomination Rules) of 1985, to avail the nomination benefits.

The depositor can change the nominee at any point of time during the tenure of the fixed deposit (FD) scheme by informing the bank’s authorities.

The private lender, HDFC Bank also provides nomination facilities to its customers with respect to fixed deposit schemes.

Penalty Charges on HDFC Bank Fixed Deposits

The customer who wishes to withdraw the fixed deposit before the maturity period has to bear the penalty charges as levied by the bank at the time of close of the deposit.

The interest rate applicable for premature closure of FD will be lower of:

• The base rate applicable for the term for which the FD has been booked for
                                                         Or

• The base rate applicable for the term for which the FD has been in force with HDFC Bank.

The base rate is the rates which are applicable for deposits whose value is less than Rs 1 crore as on the date of initial deposit.

In case if the deposit value is more than Rs 5 crore, then the base rate will be the rate applicable for Rs 5 crore deposits as on the date of the initial deposit.

In the event of premature withdrawal of fixed deposit including sweep-ins and partial withdrawals, the bank will charge a penalty of 1% on the applicable rate.

Please Note: Penalty for premature withdrawal is not applicable on fixed deposits whose tenure ranges between 7 – 14 days.

Open Fixed Deposits in HDFC Bank via Online

The advent of technology has provided many benefits to the users as it saves time and money. If an individual wishes to do anything then the same can be done at the nick of the time with the help of online.

HDFC Bank has provided its online platform to help its customers to get the services even at the odd hours as one need not have to go in person to any of the branches of the bank to avail the services.

Benefits of opening FD’s through Online

• Assured high returns with easy investment procedure
• Get higher rate of interest rates for Senior Citizens
• Flexibility and security while operating the fixed deposits through online mode
• One can conveniently book for fixed deposit through net banking by conveniently sitting at home/ in office
• Appoint nominees via online
• Liquidate deposits
• Avail sweep-in and super saver facility
• Submit Form 15G/15H via online mode
• One can view fixed deposit advice