HDFC Recurring Deposit Interest Rate -2024
Introduction:
HDFC Bank presents enticing recurring deposit schemes featuring appealing interest rates for its clientele. Established in 1994, HDFC Bank Ltd. stands as an Indian banking and financial services institution, ranking as the second-largest private sector bank in terms of assets.
Typically, HDFC offers RD interest rates ranging from 4.50% to 7% per annum. Individuals can initiate an HDFC recurring deposit account with a deposit as low as Rs. 1,000, reaching up to Rs. 14,99,900, spanning tenures from 6 months to 10 years.
HDFC Bank presents enticing recurring deposit schemes featuring appealing interest rates for its clientele. Established in 1994, HDFC Bank Ltd. stands as an Indian banking and financial services institution, ranking as the second-largest private sector bank in terms of assets.
Typically, HDFC offers RD interest rates ranging from 4.50% to 7% per annum. Individuals can initiate an HDFC recurring deposit account with a deposit as low as Rs. 1,000, reaching up to Rs. 14,99,900, spanning tenures from 6 months to 10 years.
Features of HDFC Recurring Deposit
Here are the features of the recurring deposit offered by HDFC:
Monthly Investment Amount:
To open an RD account with HDFC, individuals are required to maintain a minimum monthly investment of Rs. 1000, extendable up to Rs. 14,99,900.
Minimum Tenure:
Indian citizens of any age must open an RD account with a minimum tenure of 6 months, while NRIs must maintain a minimum tenure of 12 months or 1 year.
Fixed Instalment:
Once the monthly installment amount is set, it cannot be altered throughout the maturity period.
Overdue Payments:
If an individual consistently delays six payments, HDFC reserves the right to cancel the account.
Partial Investments:
HDFC Recurring Deposit does not permit partial payment of monthly installments.
Conversion:
Account holders have the option to convert their HDFC RD into a Fixed Deposit before maturity.
Here are the features of the recurring deposit offered by HDFC:
Monthly Investment Amount:
To open an RD account with HDFC, individuals are required to maintain a minimum monthly investment of Rs. 1000, extendable up to Rs. 14,99,900.
Minimum Tenure:
Indian citizens of any age must open an RD account with a minimum tenure of 6 months, while NRIs must maintain a minimum tenure of 12 months or 1 year.
Fixed Instalment:
Once the monthly installment amount is set, it cannot be altered throughout the maturity period.
Overdue Payments:
If an individual consistently delays six payments, HDFC reserves the right to cancel the account.
Partial Investments:
HDFC Recurring Deposit does not permit partial payment of monthly installments.
Conversion:
Account holders have the option to convert their HDFC RD into a Fixed Deposit before maturity.
Recurring Deposit Interest Rates - 2024
Banks
Interest
Rates (PA)
Interest
Rates (PA)
Interest Rate
for Seniors (PA)
Interest Rate
for Seniors (PA)
Bandhan Bank RD Interest Rate
Bandhan Bank RD
Interest Rate
3.0% - 7.25%
3.5% - 7.75%
₹15,000
Kotak Mahindra Bank RD Interest Rate
Kotak Mahindra
Bank RD Interest Rate
Kotak Mahindra Bank RD
Interest Rate
4.0% - 7.25%
4.0% - 7.25%
4.0% - 7.75%
IDFC First Bank Rd Interest Rate
Central Bank
of India
3.5% - 7.0%
3.5% - 7.0%
4.0% - 7.5%
YES Bank RD Interest Rate
YES Bank RD
Interest Rate
7.45% - 7.75%
7.95% - 8.25%
RBL Bank RD Interest Rate
RBL Bank RD
Interest Rate
3.0% - 7.25%
3.0% - 7.25%
3.5% - 7.75%
Eligibility Criteria
The following individuals and entities are eligible to open an RD:
Residency:
Any individual residing within the country's jurisdiction can open an RD account. This includes citizens, permanent residents, and individuals residing in the country temporarily.
Minors:
Minors aged 10 and above are allowed to open an RD account with the consent and supervision of a guardian. This provision encourages financial literacy and savings habits among young individuals.
NRIs and PIOs:
Non-resident Indians (NRIs) and Persons of Indian Origin (PIOs) are permitted to open RD accounts. This allows individuals living abroad to invest in Indian financial instruments and benefit from the returns.
Organizations:
Various types of organizations, including companies, partnerships, sole proprietorships, and Hindu Undivided Families (HUFs), are eligible to open RD accounts. This enables businesses and entities to save and invest surplus funds for future financial goals.
Trusts:
Trusts, which are legal entities created for charitable, religious, or other purposes, are also eligible to open RD accounts. This provides trusts with a secure investment option to grow their funds.
Companies:
Corporate entities, including public and private companies, can open RD accounts as part of their treasury management strategies. RDs offer a stable and low-risk investment option for companies to park surplus funds and earn returns.
Partner Firms:
Partnership firms, which consist of two or more individuals who agree to share profits and losses, can also open RD accounts. This allows partners to collectively invest and save for their future financial needs.
The following individuals and entities are eligible to open an RD:
Residency:
Any individual residing within the country's jurisdiction can open an RD account. This includes citizens, permanent residents, and individuals residing in the country temporarily.
Minors:
Minors aged 10 and above are allowed to open an RD account with the consent and supervision of a guardian. This provision encourages financial literacy and savings habits among young individuals.
NRIs and PIOs:
Non-resident Indians (NRIs) and Persons of Indian Origin (PIOs) are permitted to open RD accounts. This allows individuals living abroad to invest in Indian financial instruments and benefit from the returns.
Organizations:
Various types of organizations, including companies, partnerships, sole proprietorships, and Hindu Undivided Families (HUFs), are eligible to open RD accounts. This enables businesses and entities to save and invest surplus funds for future financial goals.
Trusts:
Trusts, which are legal entities created for charitable, religious, or other purposes, are also eligible to open RD accounts. This provides trusts with a secure investment option to grow their funds.
Companies:
Corporate entities, including public and private companies, can open RD accounts as part of their treasury management strategies. RDs offer a stable and low-risk investment option for companies to park surplus funds and earn returns.
Partner Firms:
Partnership firms, which consist of two or more individuals who agree to share profits and losses, can also open RD accounts. This allows partners to collectively invest and save for their future financial needs.
The following individuals and entities are eligible to open an RD:
Residency:
Any individual residing within the country's jurisdiction can open an RD account. This includes citizens, permanent residents, and individuals residing in the country temporarily.
Minors:
Minors aged 10 and above are allowed to open an RD account with the consent and supervision of a guardian. This provision encourages financial literacy and savings habits among young individuals.
NRIs and PIOs:
Non-resident Indians (NRIs) and Persons of Indian Origin (PIOs) are permitted to open RD accounts. This allows individuals living abroad to invest in Indian financial instruments and benefit from the returns.
Organizations:
Various types of organizations, including companies, partnerships, sole proprietorships, and Hindu Undivided Families (HUFs), are eligible to open RD accounts. This enables businesses and entities to save and invest surplus funds for future financial goals.
Trusts:
Trusts, which are legal entities created for charitable, religious, or other purposes, are also eligible to open RD accounts. This provides trusts with a secure investment option to grow their funds.
Companies:
Corporate entities, including public and private companies, can open RD accounts as part of their treasury management strategies. RDs offer a stable and low-risk investment option for companies to park surplus funds and earn returns.
Partner Firms:
Partnership firms, which consist of two or more individuals who agree to share profits and losses, can also open RD accounts. This allows partners to collectively invest and save for their future financial needs.
Documents Required
Application Form:
The application form serves as the initial step in the account opening process, gathering essential information required by the bank to create the RD account.
KYC Documents:
KYC documents play a vital role in verifying the identity and address of the applicant, ensuring compliance with regulatory guidelines. These documents establish the applicant's identity and residence, safeguarding against fraudulent activities.
JYC Documents for Partnerships:
Partnership firms are required to provide Joint Venture Agreement (JYC) documents, which formalize the partnership agreement between the partners, delineating their roles, responsibilities, and profit-sharing arrangements.
KYC and HUF Declaration for HUFs:
Hindu Undivided Families (HUFs) need to furnish KYC documents along with a declaration detailing the HUF's composition and members. This ensures compliance with regulatory requirements and establishes the legitimacy of the HUF entity.
Passport Size Photo:
A passport-sized photograph of the applicant is affixed to the application form to provide visual identification and authentication, aiding in the verification process.
Application Form:
The application form serves as the initial step in the account opening process, gathering essential information required by the bank to create the RD account.
KYC Documents:
KYC documents play a vital role in verifying the identity and address of the applicant, ensuring compliance with regulatory guidelines. These documents establish the applicant's identity and residence, safeguarding against fraudulent activities.
JYC Documents for Partnerships:
Partnership firms are required to provide Joint Venture Agreement (JYC) documents, which formalize the partnership agreement between the partners, delineating their roles, responsibilities, and profit-sharing arrangements.
KYC and HUF Declaration for HUFs:
Hindu Undivided Families (HUFs) need to furnish KYC documents along with a declaration detailing the HUF's composition and members. This ensures compliance with regulatory requirements and establishes the legitimacy of the HUF entity.
Passport Size Photo:
A passport-sized photograph of the applicant is affixed to the application form to provide visual identification and authentication, aiding in the verification process.
Application Form:
The application form serves as the initial step in the account opening process, gathering essential information required by the bank to create the RD account.
KYC Documents:
KYC documents play a vital role in verifying the identity and address of the applicant, ensuring compliance with regulatory guidelines. These documents establish the applicant's identity and residence, safeguarding against fraudulent activities.
JYC Documents for Partnerships:
Partnership firms are required to provide Joint Venture Agreement (JYC) documents, which formalize the partnership agreement between the partners, delineating their roles, responsibilities, and profit-sharing arrangements.
KYC and HUF Declaration for HUFs:
Hindu Undivided Families (HUFs) need to furnish KYC documents along with a declaration detailing the HUF's composition and members. This ensures compliance with regulatory requirements and establishes the legitimacy of the HUF entity.
Passport Size Photo:
A passport-sized photograph of the applicant is affixed to the application form to provide visual identification and authentication, aiding in the verification process.
Types of HDFC Recurring Deposit Schemes
Interest Rates and Minimum Deposit:
Under this RD scheme, individuals can earn interest rates equivalent to those offered by the HDFC fixed deposit scheme. The account can be opened with a minimum amount of Rs. 1000.
Flexibility and Prepayment Policy:
Within this recurring deposit scheme, depositors have the flexibility to deposit funds whenever available. Moreover, no prepayment penalty charges will be levied if the amount is withdrawn before the maturity date.
NRI Options:
The bank also allows Non-Resident Indians (NRIs) to open NRE recurring deposit accounts (Non-Resident External accounts). For an NRE RD account, the minimum tenure is 1 year, while the maximum is 10 years.
Interest Rates and Minimum Deposit:
Under this RD scheme, individuals can earn interest rates equivalent to those offered by the HDFC fixed deposit scheme. The account can be opened with a minimum amount of Rs. 1000.
Flexibility and Prepayment Policy:
Within this recurring deposit scheme, depositors have the flexibility to deposit funds whenever available. Moreover, no prepayment penalty charges will be levied if the amount is withdrawn before the maturity date.
NRI Options:
The bank also allows Non-Resident Indians (NRIs) to open NRE recurring deposit accounts (Non-Resident External accounts). For an NRE RD account, the minimum tenure is 1 year, while the maximum is 10 years.
HDFC Bank RD Premature Withdrawal Facility
Liquidation Options:
HDFC Bank provides customers with flexibility in closing their Recurring Deposit accounts. They can choose to visit the bank branch directly or opt for the convenience of online closure through the bank's net banking facility.
This ensures that customers can manage their RD accounts according to their preferred method.
Premature Withdrawal:
In the event of premature withdrawal, where the depositor chooses to withdraw funds from the RD account before the completion of the agreed-upon tenure, the full interest amount earned on the deposit will not be provided.
This is a common practice among banks to deter early withdrawals and encourage customers to maintain their investments until maturity.
Partial Interest Crediting:
When opting for premature withdrawal, the bank will credit back the principal amount deposited by the customer along with a partial interest amount. The exact portion of interest credited back depends on the terms and conditions outlined by HDFC Bank for premature withdrawals.
These terms may vary based on factors such as the duration of the RD, the interest rate, and the bank's policies.
Liquidation Options:
HDFC Bank provides customers with flexibility in closing their Recurring Deposit accounts. They can choose to visit the bank branch directly or opt for the convenience of online closure through the bank's net banking facility.
This ensures that customers can manage their RD accounts according to their preferred method.
Premature Withdrawal:
In the event of premature withdrawal, where the depositor chooses to withdraw funds from the RD account before the completion of the agreed-upon tenure, the full interest amount earned on the deposit will not be provided.
This is a common practice among banks to deter early withdrawals and encourage customers to maintain their investments until maturity.
Partial Interest Crediting:
When opting for premature withdrawal, the bank will credit back the principal amount deposited by the customer along with a partial interest amount. The exact portion of interest credited back depends on the terms and conditions outlined by HDFC Bank for premature withdrawals.
These terms may vary based on factors such as the duration of the RD, the interest rate, and the bank's policies.
Tax Exemptions on HDFC RD
When the cumulative interest earned on Fixed Deposits (FDs) and Recurring Deposits (RDs) from all branches of the bank reaches Rs. 40,000 in a fiscal year, Tax Deducted at Source (TDS) will be applicable (Rs. 50,000 for senior citizens).
The TDS amount will be deducted from the linked current or savings account associated with the RD account. If the linked account does not maintain a sufficient balance, the TDS will be deducted directly from the RD interest received.
If your annual income does not exceed the basic exemption limit, you have the option to request the bank not to deduct tax at source by submitting Form 15G or 15H.
When the cumulative interest earned on Fixed Deposits (FDs) and Recurring Deposits (RDs) from all branches of the bank reaches Rs. 40,000 in a fiscal year, Tax Deducted at Source (TDS) will be applicable (Rs. 50,000 for senior citizens).
The TDS amount will be deducted from the linked current or savings account associated with the RD account. If the linked account does not maintain a sufficient balance, the TDS will be deducted directly from the RD interest received.
If your annual income does not exceed the basic exemption limit, you have the option to request the bank not to deduct tax at source by submitting Form 15G or 15H.
How to Open a Recurring Deposit Account in HDFC?
An HDFC recurring deposit account can be initiated through two methods:
In-Person Visit: You can open an HDFC recurring deposit account by directly visiting the bank branch.
Online via Net Banking: Alternatively, if you already hold an HDFC account, you can utilize your net banking credentials to log in and swiftly open an e-RD within minutes. However, if you are not an existing HDFC account holder, you must first open an account. Once your account is activated, you can proceed to log in and promptly open an e-RD.
With additional advantages offered under schemes like the HDFC Dream Deposit, customers gain an edge over conventional recurring deposit accounts.
Furthermore, the HDFC RD interest rates for 2024 are nearly on par with fixed deposit rates, making it an attractive option for investment. Nevertheless, it is advisable to thoroughly review all terms and conditions before making any investment decisions.
An HDFC recurring deposit account can be initiated through two methods:
In-Person Visit: You can open an HDFC recurring deposit account by directly visiting the bank branch.
Online via Net Banking: Alternatively, if you already hold an HDFC account, you can utilize your net banking credentials to log in and swiftly open an e-RD within minutes. However, if you are not an existing HDFC account holder, you must first open an account. Once your account is activated, you can proceed to log in and promptly open an e-RD.
With additional advantages offered under schemes like the HDFC Dream Deposit, customers gain an edge over conventional recurring deposit accounts.
Furthermore, the HDFC RD interest rates for 2024 are nearly on par with fixed deposit rates, making it an attractive option for investment. Nevertheless, it is advisable to thoroughly review all terms and conditions before making any investment decisions.
How to Calculate the Maturity Amount on HDFC Bank RD?
To compute the maturity amount for an HDFC Bank Recurring Deposit, employ the following formula:
A = P*(1+R/N)^(Nt)
In this formula:
A represents the maturity amount.
R signifies the rate of interest.
P denotes the principal deposited.
N signifies the number of times interest is compounded per year.
t represents the tenure in years.
To compute the maturity amount for an HDFC Bank Recurring Deposit, employ the following formula:
A = P*(1+R/N)^(Nt)
In this formula:
A represents the maturity amount.
R signifies the rate of interest.
P denotes the principal deposited.
N signifies the number of times interest is compounded per year.
t represents the tenure in years.
Nomination Option for Recurring Deposits
For Recurring Deposit (RD) accounts opened in a single individual's name, you have the choice to nominate either a new nominee or select an existing nominee already designated for the primary savings account.
If the RD account is jointly held, the nominated individual must match the nominee selected for the primary savings account.
Both scenarios allow the use of HDFC Net Banking facilities for nomination purposes.
For Recurring Deposit (RD) accounts opened in a single individual's name, you have the choice to nominate either a new nominee or select an existing nominee already designated for the primary savings account.
If the RD account is jointly held, the nominated individual must match the nominee selected for the primary savings account.
Both scenarios allow the use of HDFC Net Banking facilities for nomination purposes.
1.) How can I close my RD account?
You can close your RD account either by visiting your bank branch, using net banking, or through the bank's mobile application.
2.) Where will the closure proceeds be deposited?
The closure proceeds will be credited to the same savings bank account from which the recurring deposit payments were deducted.
3.) Is it necessary to visit the bank branch to close the RD account?
No, you can also close your RD account using net banking or the bank's mobile application.
4.) Can I close my RD account online?
Yes, you can close your RD account online through net banking or the bank's mobile application.
5.) Will I receive the closure proceeds immediately?
The closure proceeds will be deposited into your savings account, usually within a few business days after the closure request is processed.
Author
Harish Malhi
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