HDFC FD - Scheme, Eligibility, Documents

HDFC is one of the leading fixed deposit providers in the country. The Bank offers FD with flexible tenures ranging between 1 year to 7 years. Apart from that, HDFC FD offers regular returns on fixed deposits ranging between 6.20% to 6.65%. For senior citizens, the interest rates on fixed deposits range between 6.00% to 6.50%. In addition to that, HDFC fixed deposit plans offer tailor-made fixed deposit products for different kinds of fixed deposit investors.

Different type of HDFC term deposit products offered to the investors are listed as follows:

Description:

• Under Regular Fixed Deposit, the depositor is allowed to make investment into the deposit to earn attractive and higher returns along with a flexibility and security.
• Rated AAA by both CRISIL and ICRA
• Attractive and assured returns
• High return for senior citizens
• Nomination facility is available
• Facility of loan against deposit

Eligibility:

• Resident Indians, private or public limited company, hindu undivided family, trust and partnership firm

HDFC fixed deposit is a popular investment option due to a number of benefits it provides to the FD investors. Some of these are mentioned below:

• Guaranteed returns: The best thing about HDFC FD is that it offers guaranteed and assured returns to the investors. The return offered on a fixed deposits is regulated by the Bank on a monthly, or quarterly basis, as per the Bank’s choice. Currently, HDFC offers FD rates up to 6.65%. The interest rates offered on HDFC FD is not only assured but also way higher than a savings account.
• Insured by the Government: The Deposit Insurance and Credit Guarantee Corporation offers deposit insurance of ₹ 5 Lakh to fixed deposits across all banks. As HDFC is a HFC, deposits are not covered under insurance. However, credit rating agencies give ratings to your deposits, which give a good understanding of savings. Investing in a fixed deposits with the highest rating of AAA, rated by ICRA and CRISIL, is a reliable investment option.Thus, HDFC term deposit is safe and secure, as the funds are backed by the government no matter what the current situation of the Bank is.
• Loan against FD: The investment made in an FD scheme is not only a reliable investment option but can also act as an asset. This is because HDFC fixed deposit allows one to borrow a secured loan against HDFC FD. Benefits of Loan Against FD of HDFC are as follow:
  • Loan against FD of HDFC offers the loan amount upto 90%-95% of the FD amount.
  • The interest charged on the loan against FDs are generally low and are 2% to 3% higher than the FD interest rate.
  • Loan against FD of the HDFCs flexible repayment options.
  • The processing fee of Loan Against FD in the HDFC is nil.
  • It is a hassle-free loan and does not require the depositor to break the FD.
Loan Against Fixed Deposit
• Flexible tenures: HDFC FD offers the investors the flexibility to choose the investment tenure as per their convenience. HDFC offers fixed deposit for a minimum tenure of 1 year up to a maximum tenure of 7 years. HDFC offers different interest rates across FD tenures.
• Flexible investment: Apart from the flexibility of tenure, HDFC fixed deposit offers the flexibility of funds to FD investors as funds can be invested with a minimum amount of Rs. 5,000. Apart from that, one can invest in the HDFC FD up to a maximum of No Limit.

Though a fixed deposit with HDFC means depositing funds for a fixed period of time in expectation of a regular return. However, keeping in view the instability in the markets, the Bank allows premature withdrawals of funds from a fixed deposit. This means that investors can withdraw their funds before the date of maturity to fulfil their urgent financial conditions.

Withdrawing funds prematurely from HDFC will attract an interest rate lowered by Allowed below the effective rate on the date of booking the FD. The penalty charged on fixed deposits is valid only on fixed deposits with a tenure greater than seven days. In case of premature withdrawal of HDFC fixed deposits with tenure less than seven days, the bank does not pay any interest.

HDFC FD facility can be availed by the following type of investors:

• Indian Citizens
• Members of HUFs or the Hindu Undivided Family
• Business firms
• Local governing bodies
• Government departments
• Employees of private limited companies
• Trust accounts

HDFC fixed deposit requires one to submit the following documents:

• Passport size photographs
• Identity proofs such as Aadhar card, passport, PAN card, and driving license.
• Address proofs such as passport, ration card, utility bills such as water, gas or electricity bill.
• Age proof such as birth certificate, matriculation passing certificate, and Voter ID card.
• Bank account details such as passbook and account number.

Credit Cards againstHDFC FD are secured credit cards. They are availed against the amount deposited in the term deposits. They are an ideal option for individuals with low CIBIL score and salary. Below mentioned are the important features of Credit Cards against HDFC FD:

• The limit offered on the credit card depends upon the amount deposited in the fixed deposits. Generally, banks offer around 80% of the deposit amount as the total credit limit on the card.
• Credit Cards against the fixed deposits require minimum documentation.
• The minimum tenure of the term deposits should be 6 months to avail credit card against it.
• Secured Credit cards also offer discounts, cashback and rewards.
• The cardholder continues to earn the same applicable interest rate on FD.

✅What is the loan against FD repayment tenure in HDFC?

Loan against FD is the  facility which allows the investor to avail the loan against the amount deposited in the term deposit. HDFC offers the loan against FD facility to the FD investors with a repayment tenure of up to 7 years.

✅ What is the minimum investment for FDs under HDFC?

HDFC Fixed Deposit is one of the safest investment avenues and it can be availed with a minimum deposit of Rs. 5,000.

✅ What is the minimum amount for a fixed deposit in HDFC?

The minimum amount required for a fixed deposit investment in HDFC fixed deposit is Rs. 5,000.

✅ What is the current interest rate on FD in HDFC?

Currently, HDFC offers an interest rate ranging between 6.20% to 6.65% on its fixed deposits.

✅ What is the penalty for early withdrawal in HDFC?

Bank charges penalty on premature withdrawal of fixed deposits. The penalty for early withdrawal ranges between 0.5% to 1% in most cases, based on the loan amount and tenure.

✅ What is the minimum FD tenure for which a fixed Deposit account can be opened in HDFC?

HDFC fixed deposit can be opened with a minimum tenure of 1 year. The tenure of the HDFC fixed deposits ranges from 1 year to 7 years.

✅Can I deposit additional amount in my HDFC 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.

✅What documents are required to open an FD account in HDFC?

The documents required to open an FD account in HDFC includes KYC documents and Passport size photos.

✅In how many years FD doubled in the HDFC?

The time HDFC fixed deposits will take to double the initial amount will depend upon the rate of interest offered on the FD. You can calculate the maturity amount of the HDFC FD at MyLoanCare by entering the amount you want to deposit and the interest offered on FD.

✅Can an NRI open a HDFC fixed deposit account?

No, Non-Resident Individuals are not allowed to invest in HDFC schemes. It means that they are not eligible to invest in fixed deposits.

✅Is the HDFC safe for FD?

Yes, the HDFC is one of the safest avenues for any investments. HDFC is backed by the Government of India and the returns on any investment including fixed deposits are guaranteed.

✅Is it wise to take a loan against FD from the HDFC?

Yes, opting for a Loan Against FD is an excellent decision. The reasons to take loan from HDFC are:

• It offers the loan upto 90%-95% of the FD amount.
• The interest levied on the loan against FDs are generally low and are 2% to 3% higher than the FD interest rate.
• Loan against FD offers flexible repayment options.
• The processing fee of Loan Against FD is Nil.
• It is a hassle-free loan and requires minimum documentation.
• Loan against FD helps the depositors to avoid the option of premature withdrawal.

However, there might be a chance that the alternative credit option is offering lower rates with better facilities. In that case, individuals must compare and decide on the credit option.