HUDCO, or the Housing and Urban Development Corporation Limited, is a technologically based financial service providing Non-banking Company. It provides customers with a secured option of parking their savings in the company’s fixed deposits. HUDCO enjoys a stable credit rating by CRISIL, ICRA and CARE, alike.
HUDCO Fixed Deposit Interest Rates, 2020
|HUDCO FD Rates (in % p.a.)|
|Deposit Period||For Individual and Hindu Undivided Families (HUF) Depositors||For Other Depositors – Company, Trust, Firm, etc.|
|Cumulative Scheme||Non-Cumulative Scheme||Cumulative Scheme||Non-Cumulative Scheme|
Note: The above-stated rates are applicable to deposits w.e.f. 10th July 2018. Extra 0.25% is offered to senior citizens.
Types of HUDCO Fixed Deposit Schemes
The NBFC has divided its public fixed deposit scheme into two categories of:
- HUDCO Regular Plus: Periodic Income Scheme
- HUDCO Multiplier Plus: Cumulative Income Scheme
While the first scheme offers regular payment of interest income at periodic intervals on quarterly, half-yearly or yearly basis, the second scheme withholds the interest till the end of maturity (reinvesting regularly).
Features & Benefits
The following are some of the important features of HUDCO fixed deposit highlighting the benefits available to the investors:
- Tenure: 12 – 60 months
- Interest compounded on an annual basis
- Differential FD rates for individual & HUF and other depositors (company, trust, firm, etc.)
- Interest payment frequency in non-cumulative option:
- Quarterly, bi-annual or annual
- 80C tax deduction of up to Rs. 1.5 lakh on investments made in 5-year FD
- TDS @ 10% for interest income above Rs. 5,000 in a financial year
- 80C deduction applicable to individual residents and HUFs only
- Premature withdrawal facility provided
- Loan against FD available for up to 75% of the FD amount @ 2% above the applicable FD interest rate (excluding interest income, if any)
Premature Withdrawal Facility
Depositors can opt to close their FD with HUDCO before it matures, if need be. The following are important points about the facility:
- Allowed after 3 months from the date of booking
- If withdrawn after 3 months but before 6 months: interest shall be paid @ 4% to individuals while others will not be paid any interest
- If withdrawn after 6 months but before maturity date: 1% penalty shall be levied
- In case of the unfortunate death of the depositor, interest shall be paid at the contracted rate of interest with no penalty whatsoever
- Not allowed for tax saving FD of 5 years lock-in period (unless it’s a case of unfortunate demise of the first deposit holder)
Eligibility Criteria - Who can apply?
HUDCO fixed deposits can be opened by the following persons:
- Resident and Non-resident Indians
- Minors under the guardianship of their natural or legally-appointed guardians
- Hindu Undivided Families (HUFs)
- Co-operative societies and trusts
- Government and domestic companies
- Senior citizens ( aged 60 years and above)
Documents Required to Apply
The following list of documents/details must be checked with when going for the application process:
- Application Form(properly filled and duly signed)
- PAN Card or Form 60/61
- Address Proof (Aadhaar, passport, driving license, etc.)
- Passport-sized photograph
- Bank account details (Bank statement, cancelled cheque, passbook)
Note: This is an indicative list.
How to Apply?
Customers can open a fixed deposit account with HUDCO by simply collecting the above-stated documents and details and visiting the office. However, another option is available too, i.e. online application.
Steps to apply online –
Step 1: Visit the official website of HUDCO.
Step 2: Click on the ‘Public Deposit’ button to select the ‘Application Form’ option.
Step 3: Once you click on the ‘Application Form’, a new page will open with two options – Application Form: HUDCO Public Deposit Scheme and Application Form for Deposit U/S 80C – HUDCO Public Deposit Scheme.
Step 4: Choose your preferred option. For instance, when you choose the ‘Application Form for Deposit U/S 80C – HUDCO Public Deposit Scheme’, a form will appear on your screen with the details related to the documentation, rate of interest, premature withdrawal, etc.
Step 5: Thoroughly and cautiously read out every detail.
Step 6: Fill out all the requested details and attach every document asked for in the form.
Step 7: Submit it at your nearest branch.