HDFC Bank Makes Interest Rate Revision On Non-Withdrawable Deposits

The private sector lender HDFC Bank has made interest rate revision on non-withdrawable deposits. Fixed Deposits do not allow for premature withdrawal, which means that the depositor cannot terminate the account before the tenure of the deposit has expired. On March 1, 2022, the bank revised the interest rate on this deposit, and the new rates will apply to Domestic/NRE/NRO Term Deposits with amounts equal to or more than RS. 5 crore.

HDFC Bank Non-Withdrawable Deposits

In unusual circumstances, such as in the case of any instruction from any judiciary/statutory and/or regulatory agencies cases or death claim settlement instances, the bank may authorise premature withdrawal of non-withdrawable fixed deposits. However, on these instances except deceased claim settlement, the bank will not pay interest on the principal amount of these deposits if they are prematurely withdrawn and hence any interest paid up to the date of the deposit's premature closure will be reclaimed.

According to the guidelines set by HDFC Bank "In the event of premature withdrawal of these FDs due to death claim, interest to be paid to the claimant. The interest rate applicable on such withdrawal will be the contracted rate or the base rate applicable for the period the deposit has remained with the bank, whichever is lower. The base rate is the rate applicable to deposits of 5 crores as on the date of booking the deposit."

Sweep-in and partial withdrawals are not permitted on non-withdrawable fixed deposits, and the deposit will be registered with a maturity instruction of 'Do Not Renew'. The non-withdrawable deposit is only available for amounts of 5 crores and more, and the deposit has a minimum term of 91 days. For deposits having a term of more than six months, interest is calculated quarterly, and tax is withheld at source in accordance with the guidelines set by the Income Tax Department.

As of March 1, 2022, the below base rates are applicable on minimum non-withdrawable deposits of Rs 5 Cr.

HDFC Bank Non-Withdrawable Deposit Interest Rates

The interest rates applicable on non-withdrawable Domestic/NRO/NRE term deposits for amounts greater than or equal to Rs 5 Cr w.e.f. 1st Mar 2022 are listed below.

Tenors	Rs 5 Cr to Rs 200 Cr & Above
91 days	3.75%
6 months 1 day	4.00%
9 months 1 day to	4.15%
1 Year to	4.55%
15 months to	4.55%
18 months to	4.55%
21 months to 2 years	4.55%
2 years 1 day to 3 years	4.60%
3 year 1 day to 5 years	4.70%
5 year 1 day to 10 years	4.70%
Source: Bank Website