Housing Development Finance Corporation FD Rates

Deposits are a lucrative investment product availed by a vast number of customers across the country. Moreover, with an array of banking institutions in place, the scheme is also easily accessible to everyone eligible. However, with many options, consumers also need clarity regarding the ideal banking institution that can provide the best services. One of the leading banks is undoubtedly the Housing Development Finance Corporation HDFC, as popularly known. HDFC has been around for over three decades, efficiently delivering its financial services with utmost dedication and diligence. HDFC has devised its Deposit plans with timely upgrades and innovations. HDFC Fixed deposit schemes have been rated AAA by leading credit rating agencies, including ICRA and CRISIL.

In this piece, readers will be acquainted with the features and benefits of HDFC FD rates and learn how to invest.

Types of Housing Development Finance Fix Deposit

Not only does the HDFC fixed deposit scheme comes with attractive interest rates and features, but it also comes with varied types to serve a larger purpose. Customers come from different wakes of life, and to provide the best customer satisfaction, HDFC fixed deposit products have been devised to meet an array of financial needs. Here is a list of HDFC Fixed Deposit types offered by the bank.

• Regular Fixed Deposits 
• HDFC Bank SureCover FD 
• HDFC Bank HealthCover FD 
• Five-Year Tax Saving Fixed Deposit 
• FCNR Deposit 
• Overdraft Against Fixed Deposits 
• Non-withdrawable Fixed Deposit

Housing Development Finance Corporation Limited has a specific deposit product to offer. This term deposit product is known as HDFC Green and Sustainable Deposits. This product adheres to the norms regulated by United Nations’ Sustainable Development Goals. Customers are encouraged to participate in the fight against environmental challenges by opting to deposit in the Housing Development Finance Corporation Limited’s Green and Sustainable Deposit scheme. 

Housing Development Finance Fixed Deposit – Schemes

Fixed deposits are always a convenient source for making capital gains over time owing to their interest-bearing policy. With the HDFC Fixed deposit scheme, customers not only get assured returns but also choose their convenient duration and investment amount. The HDFC bank Fixed deposit schemes have been explored below.

• Regular Fixed Deposits – One can now invest in the traditional fixed deposit scheme with interest-compounding options, handsome returns, flexibility, secure funds, and regular fixed deposits. Also, there are provisions for higher interest rates for senior citizens. 
• HDFC Bank SureCover FD – HDFC has merged the concept of fixed deposit and insurance cover. The SureCover FD scheme will add an equivalent amount of insurance cover to the investment. Customers can contribute amounts ranging from INR 2 Lakhs to INR 10 Lakhs with a flexible tenure option of 1 year to 10 years.
• HDFC Bank HealthCover FD – This is another amalgamation of features of fixed deposit and health insurance cover. By booking this HDFC FD scheme, one can reap the benefits of health insurance coverage and hospital cash. The investment amount can range from INR 5 Lakhs to INR 2 crores.
• Five-Year Tax Saving Fixed Deposit – This FD scheme offers its customers the provision to claim tax deductions as per Section 80C of the Income Tax Act. There will be a locked-in period of 5 years. Investors will have to adhere to the minimum tenure policy. There will not be any provisions to make premature withdrawals. The customers can select payout options.
• FCNR Deposit – The foreign currency non-resident account or FCNR deposit is a specialised HDFC Fixed deposit scheme where customers who are NRI can open an account with foreign currency deposits. There are repatriation provisions along with premature withdrawal facilities. Users can also open this account jointly with other NRIs as well 
• Overdraft Against Fixed Deposits – One can combine their existing accounts and transfer them into a fixed deposit account. HDFC Overdraft against fixed deposit scheme offers users up to 90% of the loan without breaking their fixed deposit.
• Non-withdrawable Fixed Deposit – These FD accounts can be opened with low liquidity. Customers can open the same with a minimum deposit amount of INR 2 Crores. 

Features and Benefits of Housing Development Finance FDs

HDFC is one of the prime financial institutions in the country and has made sure to devise convenient, hassle-free, and lucrative schemes for customers. Their financial products, including the HDFC FD scheme, is one of the most sought-after investment instruments owing to the following features and benefits:

• HDFC fixed deposits are considered to be highly safe and secure. One can trust the institution to take care of their investment capital to be safe. Moreover, with regulatory laws, customers’ money is safe and insured. 
• Not only is the assurance of returns one of the primary features of the HDFC fixed deposit scheme, but also attractive interest rates make the plan a lucrative investment option for investors.
• HDFC bank is a seasoned financial services institution that, over the years, has strengthened its customer base and service quality. Users can enjoy a top-notch customer experience with the HDFC FD scheme purchase.
• The scheme comes with various plans created for a vast range of individuals meeting their wide range of needs. 
• Applications are processed in less time, providing customers with an easy and hassle-free entry. 
• Customers can choose their payout options. There is a monthly income plan, non-cumulative interest plan, annual income plan, and other cumulative options. 
• Additional interest rates for senior citizens are offered with the HDFC Fixed Deposit scheme. 

Eligibility Criteria for Housing Development Finance FD

Even though the HDFC fixed deposit schemes are lucrative and attractive for the customers, there are various parameters that they need to consider before applying for the scheme. These parameters make up the eligibility criteria to be considered by the bank to proceed with an applicant’s request. It will be beneficial for any interested individual to know the requirements for opening an HDFC fixed deposit scheme account. Given below is a list of requirements for the same.

• Any individual or company who is a citizen of India is welcome to apply for an HDFC FD account.
• Groups that can apply for the same include Hindu Undivided Family, Sole proprietorship firms, partnership firms, limited companies, trust accounts, and so on.
• For the SureCover scheme, only citizens of India can apply who are in the age range of 18 to 50 years.
• In the case of the HealthCover FD scheme, residents in the age range of 18 to 59 can book an account.

How is the Interest Rate Calculated on Housing Development Finance Fixed Deposit?

The HDFC Bank FD interest rates are mostly based on the prevailing interest rates, central bank regulations, and other financial policies. However, a basic underlying mathematical formula gives the whole calculation a structure. This formula is explained below:

P x R x T / 100

Here,

P stands for principal multiplied by R, the rate of interest multiplied by T, and the duration.

For the compound interest calculation, one can use the following formula:

A = P (1 + r / n ) n t. This translates to Amount, equivalent to the principal amount multiplied by the sum of 1 and the interest rate upon the number of compounding periods.

Despite the calculation’s complexity, customers can greatly benefit from the AI-powered HDFC FD calculator. This tool incorporates the rate of interest, investment amount, and duration of the deposit scheme. With the HDFC FD calculator, users can get clarity about the returns they can expect. This can be crucial in devising a financial plan for the future. Customers often have necessities that need financial attention, and estimation can give them a vision of how they can efficiently meet their financial requirements.

Tax on Housing Development Finance FD

Tax Deduction at source is applicable for every revenue generated from the interest. This will be as per the government tax slabs. However, there are ways to make the deductions minimal by investing in tax saver schemes. HDFC Fixed Deposit comes with a tax saver variant which, as per section 80C of the Income Tax Act 1961, investors can claim up to INR 1,50,000 each financial year.

Furthermore, any savings exceeding INR 40,000 will be liable for a tax deduction of 10%. There is slight leniency for senior citizens where the cap is set at INR 50,000. If anyone fails to pay the applicable taxes, 20% will be applied to their interest revenue.

Groups / Customer Type	Applicable Tax
Individual Citizens of India	10%
Hindu Undivided Families	10%
Corporate Companies	10%
NRO	30.90%
Firms	10%
Local Authorities	10%
Cooperative Societies	10%

Housing Development Finance FD Minimum/ Maximum Deposit Amount

The table below pertains to the maximum and minimum HDFC FD rates.

HDFC FD Type	Minimum Deposit	Maximum Deposit / Add-on
HDFC Bank SureCover FD	INR 2 Lakhs	INR 10 Lakhs
HDFC Bank HealthCover FD	INR 5 Lakhs	INR 1.99 Crore
Five Year Tax Saving FD	INR 100	INR 1,50,000 per annum
FCNR FD	USD 1,000  GBP 2,500 Euro 2,500  JPY 7,50,000 AUD 1,000 CAD 1,000	Customer can do a minimum add-on of the following amount. USD 1,000 GBP 1,000 Euro 1,000 JPY 7,50,000 AUD 1,000 CAD 1,000

Compare Housing Development Finance Fixed Deposit Returns with Top Banks 

Various financial institutions offer attractive Fixed deposit interest rates. It will be useful for customers to get acquainted with the prevailing rates to compare the best rates offered by various banks. Given below are the rates of some of the top banks offering fixed deposit schemes.

Name of Bank	General Citizens	Senior Citizens
State Bank of India FD	2.90% to 5.65%	3.40% to 6.45%
IDBI Bank FD	2.70% to 5.75%	3.20% to 6.50%
Kotak Mahindra Bank FD	2.50% to 5.90%	3.00% to 6.40%
Punjab National Bank FD	3.00% to 6.10%	3.50% to 6.60%
Canara Bank FD	2.90% to 6.00%	2.90% to 6.50%
Axis Bank FD	2.50% to 6.05%	2.50% to 6.80%
Bank of Baroda FD	3.00% to 5.50%	3.50% to 6.50%
IDFC First Bank FD	3.50% to 6.90%	4.00% to 7.40%

How to Open a Housing Development Finance FD Account

HDFC Fixed Deposit scheme is easy to open. The bank has allowed customers to open their accounts online and offline. Moreover, customers can also use the banking application on their mobile phones to complete a hassle-free entry experience. Here are the steps on how to open an HDFC FD account online.

• Go to the official website of HDFC Limited from your browser.
• Locate the Deposit section in the main menu and click on it.
• A new page will load where one can click on the Apply now option and proceed with their deposits. 
• Enter the PAN number
• An OTP will be generated. 
• This will initiate the application process.