HDFC Bank revises interest rates on FDs: Here’s what you need to know

New Delhi: Following in the footsteps of ICICI Bank and State Bank of India, private lender HDFC Bank has revised its fixed deposit rates. However, the rates on non-withdrawable fixed deposits for different tenors have been changed. The revised rates came into effect from the 1st of this month and are applicable only on bulk FDs of more than or equal to Rs 5 crore.

According to the HDFC Bank website, the increased prices are applicable to domestic citizens, NROs and NREs.

HDFC Bank is offering 4.70 percent interest on non-redeemable fixed deposits of Rs 5 crore to Rs 200 crore. It is suitable for a period of three to ten years. On the other hand, the lender is offering 4.6 per cent interest on the same amount for a period of two years or less than three years.

Fixed depositors of HDFC Bank with tenures ranging from one year to less than two years can earn 4.55 per cent. Whereas, those who have these fixed deposits for more than 9 months but less than one year, they will get 4.15 percent interest rate. In addition, the bank will offer 4% interest rate on deposits of six months to nine months.

Those who have this amount in a non-refundable fixed deposit with HDFC Bank for tenors ranging from 91 days to less than six months will get the lowest interest rate of 3.75 per cent.

Non-withdrawing fixed deposits are not the same as traditional FDs. According to the HDFC Bank website, these FDs cannot be closed by the depositor before the maturity of the deposit – as the name suggests. However, in exceptional circumstances, such as the cases of any judiciary/statutory and/or regulatory agencies or any direction from the deceased claim settlement situations, the Bank may enable premature withdrawal of these deposits.

In case of premature withdrawal of these deposits due to the above unusual circumstances (except in case of dead claim settlement), the bank will not pay any interest on the principal amount of the deposit. According to an HDFC Bank release, any interest deposited or paid up to the date of such premature closure shall be recovered from the deposit.

The bank has said in the notice that if these FDs are withdrawn prematurely due to death claim, interest will be paid to the claimant. The rate of interest on such withdrawal will be the contracted rate or the base rate in force at the time of deposit with the bank, whichever is lower. Base rate is the rate that is applicable on deposits of Rs 5 crore from the date of booking of deposit.

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