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How To Open FD in HDFC

HDFC Bank

The Housing Development Finance Corporation Limited, or HDFC, was one of the first financial institutions in India to receive Reserve Bank of India (RBI) “in principle” clearance to open a private sector bank. This was done in 1994 as part of the RBI’s strategy of liberalising the Indian banking system.

HDFC Bank was founded in August 1994 under the name HDFC Bank Limited and has its headquarters in Mumbai, India. In January 1995, the bank began operations as a Scheduled Commercial Bank. The Bank had a nationwide distribution network of 5,608 branches and 16,087 ATMs in 2,902 cities/towns as of March 31, 2021.

Benefits of HDFC FD

Fixed deposits with HDFC Bank are a popular investment option because of the various benefits they provide to FD investors. A few of them are mentioned below:

Flexible investment: Besides the flexibility of tenure, HDFC Bank fixed deposit investors benefit from the flexibility of funds, since funds can be invested as little as Rs. 5,000. Apart from that, the HDFC Bank FD can be invested in for a maximum of No Limit.

Overdraft facility available: Depositors can also take out an overdraft against their current FDs with HDFC. You can get an overdraft of up to 90% of your FD right away. This can be used to supplement your personal or professional needs. To apply for an overdraft, you must have a minimum deposit of Rs. 25,000 and a minimum term of 6 months. The interest rate on the overdraft will be 2% per year higher than the interest rate on your FD.

Benefits for senior citizens: Depositors over the age of 60 can get an additional 0.50 per cent interest rate on their money. This is true for all deposit tenures. 

Guaranteed returns: The cool thing about HDFC Bank FDs is that they provide investors with guaranteed and promised returns. The rate of return on fixed deposits is set by the bank on a monthly or quarterly basis, depending on the bank’s choice. HDFC Bank currently offers FD rates of up to 5.50 per cent. The interest rates on HDFC Bank FDs are not only guaranteed but also significantly higher than those on savings accounts.

Loan against FD: An FD plan investment is not only a safe investment option, but it can also be used as an asset. This is due to the fact that a secured loan can be taken out against an HDFC Bank fixed deposit.

Types of HDFC Fixed deposits

  • Regular Fixed Deposit: The depositor is allowed to invest in the deposit in order to earn attractive and higher returns, as well as flexibility and security, under this scheme. This allows for easy deposit booking via net banking, as well as the option of nominating a beneficiary. The deposit can be used as collateral for a loan of up to 90% on deposit.
  • HDFC Bank 5 Year Tax Saving Fixed Deposit: Fixed deposit scheme designed solely for tax savings, with deposits qualifying for tax exemption under Section 80C of the Income Tax Act. In the case of joint deposits, the tax benefit under section 80C will only be available to the deposit’s first holder.
  • Foreign Currency Non-Resident (FCNR) Fixed deposit: Earning Indian interest on foreign currency is possible with an FCNR deposit. FD holders can fully repatriate their principal and interest via this deposit facility. It allows the holder of a fixed deposit to invest in foreign currencies.
  • Non-withdrawable Deposits: Premature and partial withdrawals of funds from fixed deposits are not permitted with non-withdrawal deposits. Depositors might receive interest payments on a monthly or quarterly basis. There is no such thing as a premature withdrawal, partial withdrawal, or sweep-in facility is available in non-withdrawal deposits. 
  • Overdraft against Fixed deposit: Customers with fixed deposits can get an overdraft from HDFC Bank. The service allows you to meet your financial obligations without having to breach your fixed deposit. FD holders are eligible for up to a 90% overdraft on their account.

 

Eligibility to open FD in HDFC

Individuals, senior citizens, and Hindu Undivided Families can all apply for an HDFC bank FD. Minors are not permitted to hold FDs on their own, but they may hold an FD account with another adult.

How to open FD in HDFC

Online mode

  • Visit the HDFC bank website and sign in to the internet banking portal using your username and password.
  • In the ‘Request’ section, navigate to the ‘Open Fixed Deposits’ tab, which is placed under the ‘Accounts’ option.
  • Fill in all relevant information in the appropriate columns, such as branch name, tenure range, deposit amount, and domination details. Then press the ‘Continue’ button.
  • Verify the information and then click the ‘Confirm’ button.
  • The FD advice can be downloaded. When the FD booking is confirmed, a confirmation message will be displayed.

 

Offline mode

  • Take a visit to your local HDFC branch.
  • Speak with an HDFC bank representative and request an FD application form.
  • Fill out the form completely. Customers are usually assisted by the bank officer while filling out the form.
  • Submit all required documentation and funds.
  • When the deposit is successfully booked, the bank will issue the customer an FD receipt.

 

Documents required for opening FD in HDFC Bank

Identity proof:

  • Passport
  • Aadhaar card
  • PAN card
  • Voter ID card
  • Driving licence
  • Government ID card
  • Photo ration card
  • Senior citizen ID card

 

Address proof:

  • Passport
  • Telephone bill
  • Electricity bill
  • Bank Statement with Cheque
  • Certificate/ ID card issued by Post office

 

FAQs:

Is there an overdraft against FDs at HDFC?

Yes. On your FD, you can have an overdraft of up to 90% straight away. However, you must have a minimum deposit of Rs. 25,000 and a minimum duration of more than six months to qualify.

Is HDFC Bank a good place to put your money?

Yes, HDFC Bank is one of the safest options to put your money. The Government of India backs HDFC Bank, and all investments, including fixed deposits.

What documents are needed to start an HDFC Bank FD account?

KYC documents and passport-size photographs are required to open an FD account with HDFC Bank.

What is the minimum investment for a fixed deposit with HDFC Bank?

With just Rs. 5,000, you can open an HDFC bank FD.

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