HDFC Bank Limited is a subsidiary of one of the most trusted conglomerates in the country, Housing Development Finance Corporation. The bank started operations in India in 1994 and is now considered as one of India’s largest and most trusted banks.
HDFC offers various personal banking services, among which are fixed deposits, most sought after product for people who are looking to invest their hard earned money in a safe environment that provides regular growth. HDFC Bank offers attractive Fixed Deposit schemes with added benefits such as Sweep-in Facility and Super-Saver Facility. You can open HDFC Fixed Deposit with a minimum investment of Rs. 5000/- and avail varying tenure options. Interest rate for Fixed Deposits in HDFC varies according to the FD tenure and the investment amount. HDFC has specifically designed FDs that suits the individual needs of the depositors. These are of three broad kinds based on their tenure, that is, short, medium and long term fixed deposit.
Interest Rates (in %)
|Regular Citizens||Senior Citizens|
|7 - 14 days||3.50%||4.00%|
|15 - 29 days||4.25%||4.75%|
|30 - 45 days||5.50%||6.00%|
|46 - 60 days||5.75%||6.25%|
|61 - 90 days||5.75%||6.25%|
|91 days - 6 months||5.75%||6.25%|
|6 months 1 day- 6 months 3 days||6.00%||6.50%|
|6 months 4 days||6.00%||6.50%|
|6 months 5 days- 9 months||6.00%||6.50%|
|9 months 1 day- 9 months 3 days||6.00%||6.50%|
|9 months 4 days||6.00%||6.50%|
|9 months 5 days - 9 months 15 days||6.00%||6.50%|
|9 months 16 days||6.25%||6.75%|
|9 months 17 days < 1 Year||6.25%||6.75%|
|1 year 1 day - 1 year 3 days||6.75%||7.25%|
|1 year 4 days||6.25%||6.75%|
|1 year 5 days - 1 Year 15 Days||6.25%||6.75%|
|1 Year 16 days||6.25%||6.75%|
|1 year 17 days - 2 Years||6.25%||6.75%|
|2 years 1day - 2 Years 15 days||6.00%||6.50%|
|2 Years 16 days||6.00%||6.50%|
|2 years 17 days - 3 Years||6.00%||6.50%|
|3 years 1day - 5 years||6.00%||6.50%|
|5 Years 1 Day - 8 Years||6.00%||6.50%|
|8 Years 1 Day - 10 Years||6.00%||6.50%|
Note: HDFC FD Interest Rates are subject to change from time to time without prior notification.
Short term Fixed Deposits can be opened with the bank for durations between 30 days to 6 months. HDFC bank short-term fixed deposit rates start from 5% per annum and going up to 6.50% per annum.
- The lowest interest rate offered is 5% per annum for deposits made for tenure of 30 days.
- For deposits made from 60 days to 90 days, the interest rate is 1.25% higher, making it 6.25% per annum.
- The rates come to 6.50% per annum, for 120 days to fixed deposits of 6 months.
- Mid-term Fixed Deposits held with the bank for durations of 6 months pays you an interest of 6.75% per annum.
- HDFC bank medium-term fixed deposit rates vary as per the FD tenure.
- Deposits made for tenures of more than 6 months and less than a year range from 6.25% per annum to 7.25%.
HDFC Bank long-term fixed deposit rates for 1 to 5 years is 7.25% per annum.
As mentioned before, HDFC offers senior citizens a special interest rate which is 0.50% higher than the prescribed rates. Generally, individuals above the age of 60 years are considered Senior citizens in India. This means,
- On the shortest term deposit of 14 days, the rate offered is 4% per annum.
- The highest offered rate is 7.75% per annum for the longest term.
Customers looking for maximum gain out of HDFC term deposits must invest in deposits starting from 9 months to not more than a year as that offers the highest rates of interest out of all short and mid- term deposit options. For those looking for long term deposits, can invest as per their needs because the duration is not really a factor here, the interest rate offered for all long term deposits remain the same. The fixed deposit rates offered by the bank are subjected to change without prior notice depending on some external factors.
Rate of interest on Fixed Deposit in HDFC Bank varies according to:
- Reserve Bank of India (RBI) - RBI controls the monetary policy of the country. When RBI expands liquidity, rates move to the lower side and lead to inflation. And if the RBI lowers money supply, the interest rate for deposits increases and in turn leads to inflation getting curbed. Therefore the rate of return on fixed deposit is majorly affected by the key rates of the RBI.
- Recession / Inflation- In times of recessions, RBI expands money supply in the market by reducing the interest on the deposits in the bank. During inflation means price hike, banks usually offer higher interest on term deposits.
- Current State of Economy- Economic state of the country also determines the return rates of the different financial products like fixed deposits. When there is a high credit demand, banks offer high interest on FD to attract more deposits and meet the rising credit demand.
- Demand and Supply- Conditions where there is less demand for credit, forces banks to more often than not, decrease the interest rate for deposits. On the other hand, if there is a high demand for credit in the market, banks increase fixed deposit rates. Therefore, the demand and supply conditions are one of the major factors for fluctuations in the rate of return on fixed deposit.
- Muted Credit Demand- Banks, in the near-term during times of low credit demand affecting loan yields, decrease fixed deposit rates. This in turn, mars their net interest margin (NIM).
- By choosing three and five year FD before the banks lower the fixed deposit rates, can lock in current rates, making you a smart investor.
- Individuals in the tax brackets of higher percentage can opt for such schemes.
- Instead of opting for just one fixed deposit of say, Rs. 5 lakh, investors should ideally invest in five different fixed deposits of Rs. 1 lakh each to make partial withdrawal whenever needed.
- Investors can also choose five year tax saver fixed deposit schemes, which typically offers high returns per annum.