HDFC Recurring Deposit Interest Rates
HDFC Bank Recurring Deposit
A Recurring Deposit (RD) allows you to deposit a fixed amount on a regular basis with your bank, and earn interest income on it. It is similar to a Fixed Deposit (FD) where you enjoy a higher rate of interest than a savings account for the same principal amount.
The main difference between an FD and an RD is that a recurring deposit allows you to make ongoing periodic investments in the deposit, whereas in a fixed deposit, you need to deposit the entire lump amount at the time you open the FD account. For a much smaller investment per month, you get interest rates equal or similar to that of regular Fixed Deposits.
Advantages to opening an RD account:
- Ideal for people who cannot deposit a large initial lump sum for a fixed deposit, but want to deposit small amounts on a regular basis.
- An RD account can be opened with small minimum amount.
- Lump sum received at maturity, along with the accrued interest amount.
- The rate of interest is higher as compared to an ordinary saving bank account
- Interest Rate earned is generally equal to that of an FD
- Flexible tenures to suit the budget of the individual
- Recurring Deposit Interest rate is fixed so you are assured of a steady return
- Loan / overdraft facility available with some banks.
- More liquid than most investment instruments
- If you need to withdraw from your RD due to a financial crunch, you might need to pay a penalty.
- The interest earned might be lower than other, riskier, forms of investment, say investing in mutual funds, etc. But the money is safe and secure from market fluctuations.
HDFC Recurring Deposit:
An RD in HDFC instills a habit of regular savings, where in you can invest a fixed amount every month for a fixed number of months. You can make fixed monthly installments to an HDFC bank recurring deposit scheme either by a Standing Order, ECS mandate or by regular direct remittance.
Features of HDFC RD Account
- Allows you to safely deposit small amount of money on a regular basis rather than a bulky one-time payment at opening of the RD.
- Ideal for people with a regular, steady income who may not be able to spare enough money for the minimum amount to open an FD.
- Flexible tenure – you can choose tenures which can range from a few months to several years.
- Offers a higher rate of interest than a savings bank account—similar to an FD—but with a smaller ongoing investment.
- Is a safe, low-risk form of investment.
- Secure from fluctuations.
- Interest is paid only on maturity.
Types of Recurring Deposits Offered by HDFC Bank:
Regular Recurring Deposit:
- Minimum Opening Balance for HDFC RD account: Rs. 1000 and in multiples of Rs. 100 thereafter)
- Maximum instalment amount per month Rs. 14,99,900
- Preferential interest rate for senior citizens
- TDS on Interest is applicable
- Tenure: A minimum tenure of 6 months (and in multiples of 3 months thereafter) up to a maximum tenure of 10 years.
- Nomination facility available
- Premature Closure of RD allowed, although interest payout might be affected
- In case of any delay in the payment of scheduled installments, the maturity amount shall change
HDFC Recurring Deposit Interest Rates
HDFC Bank RD interest rate is similar to rates offered for FD accounts. You can get the best rates for an HDFC Bank Recurring Deposit by investing in any of its RD schemes. Following is an overview of HDFC Bank RD interest rates including HDFC Bank Short-Term RD Interest Rates. For the latest and accurate RD interest rates in HDFC, it is advisable to check with the bank directly.
HDFC bank recurring deposit interest rates 2015 – 2016 for Resident Customers:
|Tenure||Interest Rate (per annum)|
HDFC Bank Senior Citizen RD Interest Rates
|Tenure||Senior Citizen Rates (per annum)|
HDFC bank recurring deposit interest rates for NRE Customers:
|Tenure||Interest Rates p.a. for NRIs|
HDFC Bank Recurring Deposit Calculator:
You can make use of the HDFC Bank RD Calculator to compute the interest and the maturity earned on your invested amount. Using an RD Calculator is easy—all you need to do is enter the amount you want to invest monthly, date of opening of RD, the tenure and due date of RD; the calculator will provide the maturity amount that you get at the time of maturity of the Recurring Deposit.
Using an RD calculator gives you the maturity amount and accordingly decide how much you want to invest. You can try various investment amount options and opt for the one that is most suited to your budget and helps achieve your financial goal.
HDFC Bank RD FAQs
What is the minimum amount required to open an RD with HDFC?
The minimum opening balance for a regular recurring deposit with HDFC bank is Rs. 1000.
What is the minimum and maximum deposit period?
The minimum deposit tenure is 6 months and up to a maximum of 10 years.
How do I apply for a regular recurring deposit?
You can open a Regular Recurring Deposit online through your NetBanking account if you are an existing customer.
Alternately, you can visit your nearest branch and submit the Deposit Account form.
What is the documentation required to open an RD account?
You will require the following documents:
- Filled-in application form
- Passport size photograph
- Proof of residence
- Introduction letter from an existing customer of HDFC Bank (if required)
- Any other KYC documents as required by the bank
Does the RD have a lock-in period?
Yes, the Recurring Deposit account has a minimum lock-in period of one month.
I want to close the RD account but it has only been one month. What are the charges?
In the case of premature closure within a month, no interest shall be paid and only your principal amount shall be returned.
Can I avail an Overdraft facility?
Right now, there is no overdraft facility for Recurring Deposits.