HDFC Bank Cuts the Rate of Interest on These FDs

The largest private sector bank of India, HDFC Bank, has marginally cut its rate of interest on some of its fixed deposit schemes. The FDs maturing in one year and one day to up to two years will see a cut in interest rate. Previously, the bank was paying a 5.5% rate of interest to its senior citizens and 5% to other customers on these fixed deposits. Whereas, the current rate of interest for the same FD schemes are 5.4% for senior citizens and 4.9% for other customers. However, HDFC Bank kept the rate of interest unchanged for the other 12 Fixed Deposit options. These new rates of interest are applicable from 13th November 2020.

After the revision of HDFC Bank FD interest rates, the bank is now providing a 2.5% rate of interest on FDs maturing between seven days and 29 days and 3% on FDs having tenure between 30 days to 90 days. All the deposits that have tenure ranging between 91 days to six months have a rate of interest of 3.5%, and the FDs that are maturing between 6 months and 364 days have a rate of interest of 4.4%. The bank now offers a rate of interest of 4.9% on the fixed deposits that are maturing in 1 year.

In the latest revision of the rate of interest, HDFC Bank has cut the rates by 10 BPS on the fixed deposits that are maturing between 1 year to two years. The current rate of interest on these fixed deposits is 4.9%. The rate of interest on fixed deposits that are maturing between two years to 10 years is unchanged in this revision. In short, the rate of interest provided by HDFC Bank on the FDs are mentioned below:

Tenure

Rate of Interest

7 Days to 14 Days

2.50%

15 Days to 29 Days

2.50%

30 Days to 45 Days

3%

46 Days to 60 Days

3%

61 Days to 90 Days

3%

91 Days to 6 Months

3.5%

6 Months One Day to 9 Months

4.4%

9 Months One Day to Less Than One Year

4.4%

One Year

4.9%

One Year One Day to Two Years

4.9%

  Note: These rates of interest are applicable from 13th November 2020.

The senior citizens will get a 50BPS additional rate of interest as compared to normal people. HDFC Bank provides the rate of interest from 3% to 6.25% over the FDs that will be maturing in seven days to 10 years to the senior citizens.

Both ICICI Bank and SBI have also revised the rate of interest on their fixed deposits. Mentioned below is the rate of interest offered by the State Bank of India that is in effect since 10th September 2020.

Tenure

Rate of Interest

7 Days to 45 Days

2.9%

46 Days to 179 Days

3.9%

180 Days to 210 Days

4.4%

211 Days to Less than One Year

4.4%

One Year to Less than Two Years

4.9%

Two Years to Less than Three Years

5.1%

Three Years to Less than Five Years

5.3%

Five Years and Up to 10 Years

5.4%

Note: The aforementioned rates of interest are applicable from 10th September 2020.

The following are the rates of interest on fixed deposits offered by ICICI Bank applicable since 21st October 2020:

Tenure

Rate of Interest

7 Days to 14 Days

2.50%

15 Days to 29 Days

2.50%

30 Days to 45 Days

3%

46 Days to 60 Days

3%

61 Days to 90 Days

3%

91 Days to 120 Days

3.5%

121 Days to 184 Days

3.5%

185 Days to 210 Days

4.40%

211 Days to 270 Days

4.40%

271 Days to 289 Days

4.40%

290 Days to Less than One Year

4.40%

One Year to 389 Days

4.9%

389 Days to Less than 18 Months

4.9%

18 Months to Two Years

5%

Two Years One Day to Three Years

5.15%

Note: The aforementioned rates of interest are applicable from 21st October 2020.

From the above chart, it is clear that the highest interest rates on FDs are offered by the SBI Bank currently.

Benefits and Features of HDFC Bank Fixed Deposits

Mentioned below are the benefits of HDFC Bank Fixed Deposits:

  • Easy investment process with good returns with very low risk.
  • Can be booked easily through HDFC Bank net banking.
  • Additional 0.25% are offered to the senior citizens for FD with tenure of five years one day to 10 years.
  • For all other maturity tenures, the FDs for senior citizens get 0.50% additional rates.

Mentioned below are the features of HDFC Bank Fixed Deposits:

  • The FDs that are maturing in less than six months fetch simple interest.
  • All the FDs that are maturing in six months or more earn compound interest that is compounded quarterly.
  • For fetching interest on FD, it is essential to keep it in the bank at least for seven days.

How to Open an FD With HDFC Bank?

Eligibility to Apply for FD with HDFC Bank:

You should fall under the below eligibility criteria to open a fixed deposit account with HDFC Bank:

  • Hindu Undivided Family (HUF)
  • Residents Indian
  • Trusts
  • Sole Proprietorship Firm
  • Partnership Firms
  • Limited Companies

The below-mentioned individuals are eligible to open a five years tax-saving fixed deposit:

  • Hindu Undivided Families
  • Resident Indians
You may like to Read: Bank of Baroda FD Rates


Documents Need to Open FD with HDFC Bank:

When you apply for an FD with HDFC Bank, you have to provide the below-mentioned documents:

  • Your recent photograph
  • Form for opening an FD account. This form should be duly filled and signed.
  • KYC Documents:
    • For companies and individuals – Aadhaar card, PAN card, Driving License, or Voter ID.
    • For HUFs: PAN card that is self-attested, Bank statement of Hindu Undivided Family, Declaration deed of HUF.
    • For Partnership Companies: Partnership deed, incorporating certificate, authorized signatories' identity proofs.

So, if you are eligible for opening an FD account with HDFC Bank, then either reach the bank physically or online with all the required documents to open an account.

Summing It Up!

Commercial financial institutions like HDFC Bank review their rate of interest on fixed deposits from time to time. So, before investing in any such plans you should check the website of their provider.

Written By: PolicyBazaar - Updated: 21 December 2020
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