HDFC Bank Hikes Non-Withdrawable Fixed Deposit (FD) Rates Effective From Today

The largest private bank in India, HDFC Bank, which has over 24 trillion Indian rupees in total assets as of March 2024, has announced an adjustment in interest rates for non-withdrawable fixed deposits (FDs). According to the bank's official website, the new interest rates on non-withdrawable FDs will take effect on April 3, 2024. Customers should be informed that non-withdrawable fixed deposits do not offer a premature withdrawal option. This means that the depositor cannot close a fixed deposit account before the tenure expires or before the maturity.

HDFC Bank Non-Withdrawable FD Rates

HDFC Bank allows non-withdrawable domestic/NRE/NRO term deposits for amounts equal to and more than Rs 2 Cr to up to Rs 450 Cr for a period of 89 days to 10 years.

On non-withdrawable FDs of Rs 2 crore to Rs 5 crore, the bank is now paying an interest rate of 7.55% to 7.20% on tenure ranging from 1 year to 10 years. On non-withdrawable FDs of Rs 5 crore to Rs 25 crore, HDFC Bank will pay an interest rate of 7.00% to 7.20% on 89 days to 10 years tenure. HDFC Bank is promising an interest rate of 7.40% to 7.20% on non-withdrawable FDs maturing in 89 days to 10 years for amounts of Rs 25 Cr to Rs 450 Cr.

When it comes to non-withdrawable FDs, HDFC Bank may allow premature withdrawal of these deposits under certain unusual circumstances, such as deceased claim settlement case arises or direction from any judiciary /statutory / bankruptcy and / or regulatory authorities cases. The bank will not pay interest on the principle amount of these deposits if they are withdrawn early under the above-mentioned unusual circumstances, with the exception of deceased claim settlement cases. The deposit will be used to recover any interest that was credited or paid up until the premature closing date.

Interest will be granted to the claimant if these FDs are prematurely withdrawn owing to a death claim. Beginning on July 22, 2023, and instead of applying the contracted rate, the interest rate that applies to premature withdrawals will be the rate that was in place on the day the deposit was booked for the period that the deposit was held by HDFC Bank.

Sweep-in benefits and partial withdrawals are not allowed in the case of non-withdrawable fixed deposits (FDs). Non-resident deposits are permitted as well; deposits will be booked with a maturity instruction of "Do Not Renew." Only deposits totalling two crore rupees or more are eligible for this type of deposit; interest will be calculated quarterly for deposits with tenors longer than six months and will be applied to new fixed deposits only.

The bank's distribution network included 8,192 branches and 20,760 ATMs (cash recyclers; deposit and withdrawal) spread over 3,836 cities and towns as of February 29, 2024. The distribution network of HDFC Ltd., which consists of 737 locations and includes 214 offices of HDFC Sales Private Limited, stands merged with the network of the bank. The bank offers home loan products to non-resident Indians and persons of Indian origin through its branches in four countries and its three regional offices in Singapore, Dubai, and London.