HDFC FD Interest Rates, Apr 2018

HDFC FD rates

Tenure FD Rates Senior Citizen FD Rates
12 months to 23 months 7.40% 7.65%
24 months to 84 months 7.35% 7.60%

The above rates are applicable for deposits of below Rs. 1 crore.

HDFC FD Maturity Calculator
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HDFC FD Interest Rates 2018

HDFC offers multiple fixed deposit options to their customers to park their surplus savings for a fixed tenure. A customer is required to make a deposit once into their FD account at the time of opening the account with the bank. The customer is not allowed to deposit more money and withdraw any money in the account during the tenure of the deposit. Fixed Deposits of HDFC have a higher interest rate compared to their saving deposits. Benefits of opening a FD account in HDFC are:

FD Rates in HDFC

FDs are attractive financial instruments for depositors looking for attractive returns and high safety. FD interest rates in HDFC range from % p.a. to % p.a. for deposits with a tenure of 7 days to less than 365 days. These deposits are known as short term deposits as they have a tenure of less than 1 year. Short term HDFC FD rates for senior citizens range from % to % p.a.

Always, compare tenure wise FD rate of banks to choose the FD rate at which the bank offers the highest fixed deposit interest rate and if possible, opt for FD with highest interest rate. HDFC FD rates are the highest for the deposits with a tenure of 12 months to 23 months, wherein the FD rate of interest is 7.40% p.a

HDFC FD interest rates for long term deposits with tenure of 5 years to 84 months offer good returns. HDFC fixed deposit rates for deposits with a tenure of 84 months is 7.35%. Senior citizen are offered deposit rates of 7.60% p.a. for long termed FDs.

HDFC Fixed Deposit Rates

HDFC offers best FD rate of 7.40% on term deposits for a tenure of 12 months to 23 months. The bank offers special interest rate on FD for senior citizens. Current HDFC FD rates for senior citizens range from 7.60% to 7.65%. Fixed Deposits rates of HDFC are a function of many factors such as monetary policies of RBI, economic growth rate, credit demand and liquidity position of the bank.

The factors affecting Fixed Deposit interest rates are as follows:

Policies Framed by RBI – As per RBI guidelines, the change in Cash Reserve Ratio (CRR) and repo rate affects the interest rate of all banking instruments including the fixed deposit.

Recession – Recession results in a decrease in the interest rate offered on fixed deposit. At the time of recession, RBI is forced to release the funds in the market which it achieves by lowering the rates on cash reserve of the banks and hence, providing them with additional liquidity. As a result of high liquidity and low credit demand, banks reduce the rates on FD.

Inflation – Inflation has a positive effect on a fixed deposit interest rate. Banks typically fix interest rates of FD in a manner that it is higher than the existing inflation rates. Hence, FD rates tend to be higher in a period of rising inflation.

Current State of Economy – Economic condition of the country is the major factor that affects the fixed deposit interest rate. In a booming economy, people need and are willing to take larger credit to meet their personal and business requirements. In periods of high credit demand, banks offer higher interest rate to garner more funds through fixed deposits.

HDFC Fixed Deposit

HDFC FD Calculator

HDFC fixed deposit calculator helps you to calculate maturity value of your deposited amount at the interest rate offered compounded at quarterly. The amount of fixed deposits, interest rates on FD, deposit tenure and compounding frequency of interest together determine the maturity amount of the FD at the end of the tenure.

  • Deposit amount – This is the initial amount deposited by a customer in HDFC. Bank may allows higher interest rate on larger deposits. HDFC offers deposit amount in the range of to .
  • Rate of Interest - Interest rate is the rate charged by the bank on your fixed deposit. HDFC offers a higher rate of interest on fixed deposits of longer tenure and lower interest rate on deposits of less than a year. Highest interest rate offered by HDFC is 7.40% for deposit amount below Rs. 1 crore corresponding to a deposit tenure of years months days to years months days .
  • Period of deposit - Bank offers low interest rate for short tenure FDs and higher interest rate for long tenure FDs. Bank offers a rate of 7.40% for a 12 Months FD and a rate of % for a 84 Months FD.
  • Interest Compounding Frequency - This determines the frequency at which interest is compounded. Compounding frequency can be monthly, quarterly, half yearly or annual frequency.

Illustration: : Mr. A opens a FD account of Rs. 1 lakh with a tenure of 12 Months at an interest rate of 7.40 %. In this case, the maturity amount at the end of 12 Months will be Rs. 107,400 which includes the principal of Rs. 1 lakh and interest of Rs. 7,400 is earned on the principal amount during the period. Similarly, you can calculate the interest and maturity amount for higher tenures by using FD calculators.

HDFC calculates annually interest on its fixed deposits.

FD in HDFC – Premature Withdrawal

Premature closure of Term Deposit with HDFC is along with the lower interest rate of 4% on deposits upto 6 months and 1% for deposits above 6 months than the contracted rate. The penal provisions for premature closure on HDFC FD are subject to change from time to time and may also vary with deposit schemes.

Loan against Fixed Deposit HDFC

HDFC offers loan up to 75% against its own deposit. Note that HDFC will not give you loan against FD of any other bank. HDFC offers Loan against FD at the rate of 8.35% to 8.4%

Maximum loan tenure is restricted up to the maximum tenure of the FD.

Illustration - Mr. Rahul has opened a fixed deposit of Rs. 100,000 for 2 years in HDFC. The borrower later decided to take loan against his FD. The bank has approved a credit limit of 75% against his FD at 10% interest rate. Now, if the borrower draws Rs. 75,000 on the first of the month and then repays the money on the 1st of next month, then he is supposed to pay the interest on Rs. 75,000 availed for 1 month only. The amount he repays after 1 month is Rs. 75,598. So, the interest charged on the loan taken is Rs. 598.

FAQs on HDFC Fixed Deposit

What is the highest FD rate for HDFC?

You can earn a maximum interest of 7.40% on HDFC fixed deposit.

Are there any special rates for senior citizens FD of HDFC?

Yes, senior citizens get a higher rate on their deposits compared to FD rates. The rate of regular FD are in the range of 7.35% to 7.40%. Compared to this, the rate of senior citizens FD are in the range of 7.60% to 7.65%.

What is the tenure range for HDFC Fixed Deposit?

The tenure ranges from 360 days to 6.9041095890411 years.

Can I deposit additional amount in my FD account?

No, you cannot deposit any additional amount in your existing FD account as you are allowed to deposit only once at the time of opening the account. If you want to invest any additional amount in FD, you are required to open a new FD account.

Who is eligible for opening an FD account in HDFC?

All resident individuals, HUFs, NRIs, Firms including minors are eligible to open a fixed deposit account.

Is it possible to change the tenure of my existing fixed deposit account with HDFC ?

No, it is not possible to alter the tenure selected for the fixed deposit account once the account is opened. However, you may close your existing fixed deposit account and can open a new account with a desired tenure of your choice.

What are the implications of opening an FD bank account without having PAN?

Following are the implications for the customers opening an FD account with HDFC without their PAN card

  • TDS will be deducted at the rate of 20% as against 10% under section 206AA
  • NO TDS credit from the Income Tax department
  • NO TDS certificate will be issued
  • Form 15G/H and other exemption certificates will be invalid and penal TDS will apply
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