HDFC Fixed Deposit: Solution for Safer Investment

HDFC is one of the trusted brands in the banking sector. It has always given the best products and services to its customer. The bank has been providing all types of banking facilities to its customers.

HDFC fixed deposit is one such product that helps the customer to invest in one of the safest places. The fixed deposit is one of the product where the depositor has to deposit the fixed amount for the fixed period of time and you garner the interest rate over the amount. It is one of the best ways to invest if you do not want to take the risk.

The security of the money is one of the main factors which people look for at the time of investment. The FD gives you that chance to invest in the risk-free environment where you are sure about the returns that you will get after the fixed point of time. Thus, it provides the security, flexibility and good returns.

There are many other features that the fixed deposit gives you which makes it the ultimate investment product. It is one of the oldest ways to invest. It also gives the option of reinvestment.

It also has the tax saving scheme where you invest the amount up to ₹ 1.5 lakh for 5 years and it comes under the tax deduction. Also, you can avail the loan against fixed deposit. So, if you have the requirement of the imminent fund then you avail the loan against it which will prevail you to break it and extract the maximum benefits.

You can invest the minimum amount of ₹ 5000 as the fixed deposit. The tenure can vary from 7 days to 10 years. Thus, the depositor has all choice to go for either the short term deposit, midterm deposit or large term deposit as per their convenience.

Eligibility Criteria Required:

• The eligibility criteria must be fulfilled in order to open the FD account. Below mentioned are all the criteria that are required for having a term deposit account-
• The applicant should be the resident of India.
• Hindu undivided family
• Sole proprietorship firms
• Partnership firm
• Private limited companies
• Trust accounts
• For the investor who books the fixed deposit of worth more than ₹ 50,000, the PAN card is mandatory.
• For the Senior citizen, the Proof of age is required to establish that they are eligible under the senior citizen category or not.

Documents required:

The documents required by the individual, Hindu undivided family, and sole proprietorship at the time of opening the fixed deposit accounts are:

• A coloured photograph
• Passport/ Driving License
• Last six months bank account details

Documents required from the trust, association/ clubs for the fixed deposit account are as follow:

• Photographs of the member operating the account.
• A copy of the Trust Deed/ Bye- laws of the association.
• A copy of registration certificate.
• A copy of the resolution of trustee authorizing the member to operate and open the accounts.

Interest Rate:

The interest rate is subjected to change from time to time. The interest rate payable by the bank on short term and mid to large term fixed deposit are mentioned below:

• 7 days - 14 days  the rate of interest is 3.50%
• 15 days - 29 days the rate of interest is 4.25%
• 30 days – 45 days the rate of interest is 5.50%
• 46 days – 6 months the rate of interest is 5.75%
• 6 months – 9 months the rate of interest is 6.00%
• 9 months - < 1 year the rate of interest is 6.25%
• 1 year the rate of interest is 6.90%
• 1 year – 2 years the rate of interest is 6.25%
• 2 years – 10 years the rate of interest is 6.00%

The interest rate for Senior Citizens:

HDFC bank has special rates for the senior citizens which are relatively higher than that of the regular fixed deposit. Here the detailed information about the interest rate of the fixed deposit given to the senior citizen is mentioned below: (for amount <1cr)

• 7 days – 14 days the rate of interest is 4.00%
• 15 days – 29 days the rate of interest is 4.75%
• 30 days – 45 days the rate of interest is 6.00%
• 46 days – 6 months the rate of interest is 6.25%
• 6 months – 9 months the rate of interest is 6.50%
• 9 months - < 1 year the rate of interest is 6.75%
• 1 year the rate of interest is 7.40%
• 1 year – 2 years the rate of interest is 6.75%
• 2 years – 10 years the rate of interest is 6.50%

How to apply?

You can apply fixed deposit both online and offline. For the offline process, you will have to visit the nearby branch and open the FD account. Next, deposit the amount and fix it for the tenure selected.

For the online process, you will have to visit the site of HDFC bank. Next step is to book the fixed deposit and appoint the nominee. View the fixed deposit advice. Liquidate the deposit and submit the 15G/H Form. Your fixed deposit account will be opened.

The HDFC Fixed Deposit is one of the best and safest ways to make the investment where you get good returns. Keeping the money in savings account garners less interest rate. Thus, to get more returns and grow the amount FD is one of the best ways which is secured and flexible at the same time.