HDFC Bank RD Interest Rates
A recurring deposit is a form of term deposit provided by banks that allows people with normal incomes to deposit a certain sum per month and receive interest at the fixed deposit rate. Customers of HDFC Bank RD options get the advantages of competitive interest rates on revolving deposit schemes. HDFC Bank Ltd., a banking and financial services group, based in India, was established in 1994 and is the country’s second-largest private sector bank by assets. HDFC Bank RD interest rates usually vary from 5.65 per cent to 7% a year. An HDFC recurring deposit account can be opened with a minimum deposit of Rs. 1,000 and a maximum deposit of Rs. 14, 99, 900, with terms ranging from 6 months to 10 years.
Features of HDFC Bank RD:
As a policy, HDFC bank RD possesses these key points:
- Monthly deposit amount: To open an HDFC Bank RD account, a person must spend a minimum of Rs. 1000 every month. Amounts up to Rs. 14,99,900 can be borrowed.
- Minimum tenure: Indian residents of any age must open an RD account for at least six months. NRIs must stay in the country for a period of 12 months or one year.
- Fixed Instalment: If you’ve settled on a monthly instalment number, you can’t adjust it during the maturity period.
- Late payments: If a customer misses six payments in a row, HDFC retains the right to lock the account.
- Partial Investments: HDFC Recurring Deposits do not accept partial monthly instalment payments.
- Conversion: Until maturity, a person may turn his HDFC RD into a Fixed Deposit.
Types of HDFC Bank RD schemes:
Mainly two schemes are offered by the bank:
- Recurring Deposit (RD): This is a daily RD scheme in which you designate a monthly payment to be made to the account for a certain period of months. You can gain a competitive interest rate on your deposit in addition to capital protection. The minimum monthly deposit is Rs.1,000, with subsequent deposits in multiples of Rs.100. The calculation of the principal and interest invested will be the balance due at maturity.
- My Passion Fund: This is a versatile revolving deposit system that helps you tailor your monthly deposit payments volume and duration. The programme encourages you to name your deposit after the hobby on which you are saving.
- NRE RD Scheme: NRIs may also open an NRE revolving deposit account with the bank (Non-Resident External account). The minimum term for an NRE RD account is one year, and the median term is ten years.
HDFC Bank RD interest rates:
|Tenure||General Rates||Senior Citizen Rates|
Documentation required to open a recurring deposit account in HDFC Bank:
Until applying for an HDFC Bank RD account, customers can review the following list:
- Type of Application (properly filled and duly signed).
- PAN Card (Personal Identification Number).
- If you don’t have a PAN, fill out Form 60/61.
- Proof of Address (Aadhaar, Passport, Ration Card, Utility Bills, etc.)
- Verifiable account information.
HDFC Bank RD interest rate: Pre-mature Withdrawal
Customers may take funds out of their revolving deposit until it matures if they need them. Premature withdrawal is what it’s called. The following considerations must be made before using this facility:
- A one-month lock-in period is needed.
- If the lock-in time isn’t followed, the bank won’t pay interest (i.e. withdrawal before completing 1 month from the booking date). The lower of the two rates would be used to quantify interest: the price of interest agreed upon or when RD was involved, the interest rate was dynamic.
Calculation of HDFC Bank RD interest rate :
The calculation of HDFC Bank RD amount is done by using the following formula:
A = P*(1+R/N)^(Nt)
R denotes the rate of interest, P denotes the amount deposited, n denotes the term in months, and t denotes the applicable term.
Recurring deposit account opening process for HDFC bank:
There are two ways to access an HDFC Bank RD account: by going to the branch in person
Using Internet Banking
If you already have an HDFC account, you can log in with your net banking credentials and open an e-RD in a matter of minutes. You must first open an HDFC account if you do not already have one. You will immediately log in and open an e-RD until your account is active.
Additional advantages under programmes such as the HDFC dream deposit offer you an advantage over traditional revolving deposit accounts. Furthermore, the HDFC Bank RD interest rates 2021 are almost identical to fixed deposit rates, which is another perfect parameter for investing in a revolving deposit. However, before making any investment, it is recommended that you read all of the terms and conditions.
Nomination facility on HDFC Bank RD:
- If the HDFC Bank RD account is opened under a single person’s name, the nominee can be either a new one or one that has already been added to the base savings account.
- If the HDFC Bank RD is in a shared name, the base savings account candidate should be the same as the one in the RD.
- Both cases will benefit from HDFC Net Banking nomination services.
Tax benefit on HDFC Bank recurring deposit:
If the interest paid on FDs and RDs across all of the bank’s branches crosses Rs.40,000 in a financial year, tax is withheld at source (TDS) (Rs.50,000 for senior citizens). TDS can be reclaimed from the associated current/savings account. The TDS would be deducted from the RD interest received if the existing/savings account is not kept up to date, hence HDFC Bank RD would allow for this benefit.
If your annual income does not meet the basic exemption cap, you can recommend that the bank not deduct tax at the source by submitting Form 15G/15H.
HDFC News – Mar 2021
2021-01-18: HDFC Bank net profit rose by 18%
HDFC Bank’s net profit increased 18 per cent year over year in the December period, owing to higher net interest income. During the quarter, advances such as a house, family, motorcycle, two-wheeler, and gold loans, as well as company and mudra loans, increased by 15.6 per cent year on year to Rs 10.82 lakh crore. Deposits, which include FDs and RDs, increased by 19% year on year to Rs 12.7 lakh crore. Furthermore, the bank’s CASA ratio was 43 per cent.
2021-01-08: HDFC Bank posted a double-digit increase in deposits and advances
In the third quarter of the fiscal year, HDFC Bank announced double-digit growth in deposits and advances. As of December 31, 2020, bank advances, which include house, personal, auto, two-wheeler, gold, and education loans, as well as industry and mudra loans, had increased by 16 per cent to Rs 10.82 lakh crore. Furthermore, the bank’s deposits grew by 19 per cent to Rs 12.71 lakh crore in the third quarter of the fiscal year. As of December 31, 2020, the CASA ratio was estimated to be about 43%.
2020-10-07: HDFC Bank net profit jumps 18.4% to ₹7,513 crores
For the quarter ended September 2020, HDFC Bank increased its net profit by 18.4 per cent to Rs 7,513 crores. The profit for the previous year was Rs. 6,345 crores. In Q2 of FY21, the bank’s overall advances totalled 10.38 lakh crore, up 15.8% from the same time the previous year. Domestic retail loans, such as a house, personal, motorcycle, two-wheeler, gold, and education loans, increased by 5.3 per cent, while domestic wholesale loans, such as industry and mudra loans, increased by 26.5 per cent. In addition, total deposits, which include FD and RD, increased by 20.3 per cent year on year to 1,325,072 crores. As of September 2020, HDFC Bank’s CASA level was about 42 per cent.
2020-08-27: HDFC Bank revised its FD rates
HDFC Bank has updated its FD pricing, which will take effect on August 25, 2020. For 7 to 29 days, the FD average is 2.50 per cent, and for 30 to 90 days, it is 3 per cent. Fixed deposit rates are 3.50 per cent for 91 days to six months and 4.40 per cent for six months one day to one year. Furthermore, the FD average for one year one day to two years is 5.10 per cent, and for two years one day to three years, it is 5.15 per cent. The three-year, one-day to ten-year FD average is 5.30 per cent.
2020-04-21: HDFC Bank changed its fixed deposit rates
HDFC Bank has updated its FD pricing, which will take effect on April 22, 2020. The FD values for 7 to 14 days are 3%, 3.50 per cent for 15 to 29 days, and 4.25 per cent for 30 to 45 days. Fixed deposit rates range from 4.75 per cent to 5.25 per cent for 46 days to six months, 5.25 per cent for six months one day to nine months, and 5.50 per cent for nine months one day to less than one year. Furthermore, the FD rate for one year to two years is 5.80 per cent, and for two years and one day to ten years, it is 6 per cent.
2018-08-06: HDFC Bank revises RD rates
The interest rate on RDs has been updated by HDFC Bank for some maturities. The interest rate on nine-month RDs has been raised to 6.75 per cent, up from 6.40 per cent previously. The threshold for senior citizens has been raised to 7.25 per cent from 6.90 per cent previously. Similarly, the interest rate for twenty-seven months to sixty months would be 7.10 per cent, down from 7.00 per cent previously. The new premiums for senior citizens are 7.60 per cent, up from 7.50 per cent previously. The new prices will go into effect on August 6, 2018.
FAQs about HDFC RD accounts
✅ Does the RD features remain the same for domestic and NRI account holders?
No, the interest rate, minimum deposit tenure, and other RD features can differ between domestic and NRI account holders. It’s worth noting that NRI consumers have their own collection of interest rates. Similarly, NRIs must commit for a minimum of 12 months, while domestic consumers must commit for a minimum of six months.
✅ Can I get access to the interest accrued regularly?
Unlike FDs, the interest earned on RDs is only paid out until the account is closed.
✅ What happens to the maturity amount in case I have not paid an instalment, and the maturity date has arrived?
The deposit will be considered due for redemption and will mature after the agreed-upon term ends. And if one or two instalments remain unpaid, this remains true. In such situations, the maturity number on the RD advice slip change depending on the amount charged on time.
✅ Does defaulting on my instalments affect the account?
The bank retains the right to close your RD account if you fail to pay your instalments on a monthly basis, or if you fall behind on a minimum of six instalments. The interest rate on these accounts is close to the bank’s position on early withdrawals.
✅ Does HDFC Bank offer a loan against the RD account?
No, there are only a few banks that offer loans against RD account which are State Bank of India, Bank of Baroda, Punjab National Bank, ICICI Bank.
Table of Contents
- 1 HDFC Bank RD Interest Rates
- 2 Features of HDFC Bank RD:
- 3 Types of HDFC Bank RD schemes:
- 4 HDFC Bank RD interest rates:
- 5 Documentation required to open a recurring deposit account in HDFC Bank:
- 6 HDFC Bank RD interest rate: Pre-mature Withdrawal
- 7 Calculation of HDFC Bank RD interest rate :
- 8 Recurring deposit account opening process for HDFC bank:
- 9 Nomination facility on HDFC Bank RD:
- 10 Tax benefit on HDFC Bank recurring deposit:
- 11 HDFC News – Mar 2021
- 11.1 2021-01-18: HDFC Bank net profit rose by 18%
- 11.2 2021-01-08: HDFC Bank posted a double-digit increase in deposits and advances
- 11.3 2020-10-07: HDFC Bank net profit jumps 18.4% to ₹7,513 crores
- 11.4 2020-08-27: HDFC Bank revised its FD rates
- 11.5 2020-04-21: HDFC Bank changed its fixed deposit rates
- 11.6 2018-08-06: HDFC Bank revises RD rates
- 12 FAQs about HDFC RD accounts
- 12.1 ✅ Does the RD features remain the same for domestic and NRI account holders?
- 12.2 ✅ Can I get access to the interest accrued regularly?
- 12.3 ✅ What happens to the maturity amount in case I have not paid an instalment, and the maturity date has arrived?
- 12.4 ✅ Does defaulting on my instalments affect the account?
- 12.5 ✅ Does HDFC Bank offer a loan against the RD account?