HDFC FD Interest Rates – October 2021

HDFC Bank provides customers with fixed deposit tenure ranging from 7 days to 10 years. Rates for the said tenure range from 2.75% to 5.50% for deposits less than Rs. 2 crore.

• Deposits made for the short term like 7 days – 6 months shall fetch interest rates of 2.50% – 3.50%
• For the tenure of above 6 months to 1 year, this range can go up to 4.90% (5.40% for senior citizens)
• Likewise, for 3, and 5 years up to 10 years, customers can reap interest from 5.00% to 5.50% interest
• For the term of 5 years 1 day to 10 years, senior citizens get an extra 0.25%, thus they can earn 6.25% of the interest (w.e.f. 18th May 2020 – 31st December 2020)

Note: These HDFC FD interest rates are subject to change anytime.

For its Non-Resident Indians, the bank provides the following types of fixed deposit schemes:

• Fixed Deposit Rupee Account
• Offshore Deposit
• Fixed Deposit Foreign Currency Account

Below are the current HDFC NRI Fixed Deposit Rates

1. HDFC FD rates for NRE and NRO Accounts

HDFC Non-Resident External (NRE) Fixed Deposit Account is used to transfer foreign earnings of an NRI to India. The interest earned on deposits is not taxable in India. Deposits are made in foreign currency while the withdrawals are processed in INR.

Note: The above mentioned HDFC NRE Rates are applicable w.e.f. 21st May 2021. The bank does not offer additional rates to NRI senior citizens.

HDFC FD rates for FCNR and RFC Accounts

HDFC Foreign Currency Non-Resident (FCNR) Deposit Account is a type of account for NRIs to deposit their earnings in foreign currency. Withdrawals are also made in the same currency. The account is safe from fluctuations in the currency as there is no conversion; hence there is no conversion-related loss. Interest earned on such deposits is not taxable in India.

Note: All figures are in %. Interest rates are applicable to deposits with effect from 1st July 2021.

Resident Foreign Currency (RFC) Account is for residents of India who wish to invest their foreign earnings. Deposits are made in foreign currency while the withdrawals are processed in INR. Interest earned on such deposits is taxable in India. This type of deposit is especially beneficial for Returning Indians.

Note: These HDFC FD rates are applicable to deposits with effect from 1st July 2021.

Read more about : Types of HDFC NRI FD Accounts

HDFC Bank fixed deposits are good for you if you are looking for easy investment via phone banking or internet banking, apart from the traditional offline mode.

If your aim is to multiply your savings without any significant risks, you should invest in HDFC FD. It is advised to stay invested for 1 year at least to get decent FD interest rates.

Senior citizens (60 years or above) are advised to invest in HDFC Senior Citizen Care FD. In this scheme, senior citizens will get higher interest rates at an extra of 0.75% over the standard FD rates. Keep in mind that you need to invest for a minimum period of 5 years 1 day to get the benefits of this scheme. You can also opt for a loan against FD which is not available in a normal HDFC tax saver fixed deposit scheme (5 years lock-in).

Also, the deposits made in the bank are insured for up to Rs. 5 lakh by the DICGC.

Read more: Deposit Insurance by DICGC, 2020

HDFC Bank extends two distinct FD schemes addressing needs of its varied customers. These schemes are:

1. HDFC Regular Fixed Deposit Account

2. HDFC Tax Saving Fixed Deposit Scheme

3. HDFC Senior Citizen Care FD (valid till 31^st March 2021)

Note: Customers aged 60 years or above can invest in this scheme.

Read in detail: Types of HDFC FD Schemes

When going for any of the prior mention fixed deposit schemes with HDFC Bank, it is recommended to check the estimated maturity amount using the FD Calculator at Paisabazaar.com. This is an online free tool that can be used multiple times for different tenure and FD rates. To use it basic information of the deposit amount and tenure must be entered along with the latest interest rate corresponding with the chosen FD tenure.

The facility of withdrawing the FD amount before maturity or in simple words, closing the FD before it matures is called premature withdrawal facility. The regular HDFC fixed deposit scheme provides this option whereas the tax saving FD (with 5 years of lock-in period) does not. Bank may levy some penalty at the time of withdrawing the FD amount.

Suggested Read: How to Close FD Online?

Investors can take loan against their HDFC fixed deposit to mend financial gaps. This is one of the most important advantages of investing in a fixed deposit

• HDFC Bank lets investors take loans against their NRE, NRO or FCNR Fixed Deposit accounts also
• The loan limit is set at 90% for NRE FD, 90% for NRO FD and 70% for FCNR fixed deposit
• Customer needs to pay interest only on the amount overdrawn and not on the entire amount of the fixed deposit

Customers of HDFC FD (domestic) schemes are liable for TDS or Tax Deducted at Source.

• TDS will be deducted on interest income amounting above Rs. 40,000 (Rs. 50,000 for senior citizens)
• This limit is applicable from Assessment Year (A/Y) 2020-21
• The standard rate for this deduction is set @ 10%
• If the PAN card is not provided, income tax at the source will be deducted @ 20%

Suggested Read: Income Tax on Fixed Deposits

Eligibility Criteria (Who can open FD?)

The below-mentioned individuals and groups can apply for the Regular FD Scheme:

• Residents
• HUFs (Hindu Undivided Families)
• Sole Proprietorship Firms
• Trusts
• Limited Companies
• Partnership Firms

The following mentioned individuals/groups are eligible to open the 5 Years Tax Saving FD:

• Residents
• Hindu Undivided Families

Documents Required to Apply for HDFC Bank FD

When applying, the following list of documents must be checked beforehand for a smooth application process and to save time too:

• Account Opening Form (properly filled in and duly signed)
• Recent photograph
• KYC Documents
  • For Individual & Company: PAN Card, ADHAAR, Passport, Voter’s ID or Driving License
  • For Partnership Firms: Incorporating certificate, Partnership Deed, ID proofs of authorized signatories
  • For HUFs: Self-attested PAN card, HUF declaration deed, bank statement of HUF

For which tenure is the HDFC FD interest rate highest?

Currently, the highest HDFC FD rate is 5.50% offered for tenure ranging from 5 years 1 day – 10 years. Senior citizens get to earn interest at 6.25% on this tenure.

Are there any preferential HDFC FD interest rates for senior citizens?

Yes, the bank offers 0.50% additional FD rates over the regular interest rates offered to regular individuals. Extra 0.25% of interest is offered to senior citizens investing for a minimum of 5 years and 1 day under the HDFC Senior Citizen Care FD. This FD is valid from 18th May 2020 to 30th June 2021.

Is it compulsory to provide PAN card details while opening an HDFC fixed deposit?

It is important to share the PAN details with the bank while investing in a fixed deposit scheme. In case the PAN card is not provided, the following would be the consequences:

• Tax at source (TDS) will be deducted at 20% (instead of the normal rats of 10%)
• TDS certificate will not be provided by the bank
• You will not be able to show your investment while filing ITR because it will not be linked to your PAN

Can an investor change the maturity period of the FD?

No. The mandate cannot be changed once finalized.

Can I invest more in my already active HDFC Fixed Deposit Scheme?

No. Fixed deposits are one-time investment vehicles. This means that along with the interest rates, your investment amount, i.e. the amount deposited also remains fixed. However, if you wish to multiply your investment while earning interest at fixed rates, you should consider Recurring Deposits.