Features And Benefits Of HDFC Bank Fixed Deposit

Dating back to 1995 and 1997, banks set their Fixed Deposit Interest Rates to as high as 13%, which provided a scope, not just for reliable investment options, but room for higher returns as well. But today, the Fixed Deposit Interest Rates are confined within a range of 8 – 9%.

However, there are different types of Fixed Deposits,

  • Cumulative Fixed Deposit
  • Non-Cumulative Fixed Deposit
  • Sweep-in FDs
  • Tax saving FDs

Fixed Deposits deliver good returns in the name of – ‘Fixed Income Investment.’ Since the Reserve Bank of India (RBI) has reduced their rates of interest for Provident Funds and National Savings Certificate, Fixed Deposits have become a favourable choice for investors. They are also immune to volatile markets. In the case of extreme volatility faced by Equity Mutual Funds and stocks with downrates, Fixed Deposits have always outshone the market, in turn providing risk-free returns. They also provide flexibility and liquidity, with a tenure of 1 week – 10 years. They are one-time investments which makes them all the more feasible. 

One of the top banks to provide Fixed Deposits is the HDFC Bank amongst the others. With 5, 300 + branches and 13, 500 ATMs across the country, it has an employee count of 111, 000 individuals. Now, you may ask – ‘What makes HDFC stand out amongst others?’

Well, the HDFC Bank imparts a range of schemes, along with added benefits,

 

  1. They offer hassle-free Net banking methods in the case of booking deposits
  2. The investors can take a call to nominate family members/relatives, with regards to the Fixed Deposit 
  3. Interest Rates offered by the HDFC are higher, in comparison to their Savings Account
  4. The investors can look up for loans, up to 90%

Amongst the schemes, the HDFC provides,

  • Regular Fixed Deposit (7 days – 10 years)
  • HDFC Tax Saving Fixed Deposit (5 year lock-in period)
  • Senior Citizen Fixed Deposit (Applies to citizens above 60 years of age)

The eligibility criteria for HDFC Fixed Deposits are only fulfilled if you are an Indian Resident, have a Sole Proprietorship, Trusts and Limited Companies. They must be a member of the Hindu Undivided Family (HUF) and be a part of partnership firms.

In order to apply for Fixed Deposits, the documentation which are required are: 

  1. KYC documents (Identity Proof, Aadhaar Card, Voter ID, PAN Card, Driving License, Passport, Ration Card and ID Card). 
  2. Under Proof of Address, you will have to submit your Electricity Bill, along with your ID/ license issued by the Post Office, Bank Statement and Telephone Bill.

As far as the Fixed Deposits granted by the HDFC Bank are concerned, they provide an interest of 5.35%. The available tenure is for 2-3 years.HDFC bank provides a higher rate of interest to senior citizens. At present, the Rates of Interest for senior citizens are between 3.21% and 6.00%.

The ‘Premature Withdrawal’ (the closure of the Fixed Deposits, before the completion of the stipulated tenure) can be opted by the consumers to withdraw a deposited fund after paying a Penalty fee of 1%. For those who have invested in the HDFC’s Tax Saving Fixed Deposit, they are not eligible to withdraw the given amount, before the lock-in period of 5-year.

Since the HDFC Bank’s Fixed Deposit is taxable, investors can apply for special tax deductions, provided by the bank. This will enable their total interest income pertaining to an amount less than 40, 000 for a year or 50, 000 in the case of senior citizens. To avail for these deductions, consumers are required to fill in the ‘Form 15G and Form 15H.’

Top Banks that provide Interest Rates for Fixed Deposits below 2 Crores :

  • State Bank of India – In the case of General Citizens, it ranges from 2.90% – 5.40%, and for Senior Citizens, it ranges from 3.40% – 6.20%
  • ICICI Bank – In the case of General Citizens, it ranges from 2.50% – 5.50%, and for Senior Citizens, it ranges from 3.00% – 6.30%
  • HDFC Bank – In the case of General Citizens, it ranges from 2.50% – 5.50%, and for Senior Citizens, it ranges from 3.00% – 6.25%

For banks providing Tax Saver Fixed Deposits, the Interest Rates catered are:

  • State Bank of India – In the case of General Citizens, it is 5.30%, and for Senior Citizens, it is 5.80%
  • ICICI Bank – In the case of General Citizens, it is 5.35%, and for Senior Citizens, it is 5.85%
  • HDFC Bank – In the case of General Citizens, it is 5.50%, and for Senior Citizens, it is 6.25%

With the comparisons given above, you have a clearer picture of the Interest Rates provided by the HDFC Bank and other Banking Institutions. Opt for a Fixed Deposit and keep your money safe.