HDFC Bank Recurring Deposit 2025
HDFC Bank offers recurring deposit schemes with attractive interest rates to its customers. Usually, RD interest rates in HDFC range from 4.50% to 7% per annum. One can open an HDFC recurring deposit account with a minimum deposit of Rs. 1,000 to Rs. 14, 99, 900 with tenures ranging from 6 months to 10 years.
HDFC Bank offers recurring deposit under two schemes - Regular Recurring Deposit and NRE Recurring Deposit. You can get an interest rate ranging from 4.50% to 7.00% on the deposited amount.
Senior citizens can get a 0.50% additional interest rate on the deposit. HDFC recurring deposit also lets you enjoy additional benefits like grace facility of 5 days, no TDS (Tax Deductible at Source) on the interest rate, and so on.
Regular Recurring Deposit (RD)
Key Highlights
Minimum Deposit Amount | Min: Rs.1,000 per month (for any higher amount, deposit in multiples of Rs.100) Max: 14,99,900 per month |
Tenure | Min: 6 months (thereafter in multiples of 3 months) Max: 10 years |
Interest Rate | Min: 4.50% Max: 7.00% |
Additional Rate for Senior Citizens | 0.50% |
Eligibility | Resident individuals, HUF, private and public companies, trust and societies |
Premature Withdrawal | 1% penalty of deposited amount |
Nomination Facility | Available |
TDS on RD | Applicable |
Features and Benefits of Regular Recurring Deposit (RD)
The following are the features and benefits of HDFC Regular Recurring Deposit:
- 5 days grace period facility provided by the HDFC bank for RD.
- Interest is paid of maturity.
- You cannot alter the instalment amount once it has been fixed.
- Payment of a single instalment cannot be divided into parts.
- The minimum lock-in period of an RD is one month.
- No interest will be offered in the events of closing the RD within a period of a month.
- In case there are more than two months of instalments overdue, and you pay enough to cover just one instalment, it will be directed towards the first/earliest month of overdue.
- The RD will mature irrespective of overdue instalments.
- A Bank can close the RD account in case you frequently fail to pay the monthly instalments.
NRE Recurring Deposit (RD)
Minimum Deposit Amount | Min: Rs.1,000 per month (for any higher amount, deposit in multiples of Rs.100) Max: 14,99,900 per month |
Tenure | Min: 1 year Max: 10 years |
Interest Rate | Min: 4.50% Max: 7.10% |
Additional Rate for Senior Citizens | Not Available |
Eligibility | Non Resident Indian (NRI) |
Premature Withdrawal | 1% penalty of deposited amount |
Nomination Facility | Available |
TDS on RD | Applicable |
Features and Benefits of NRE Recurring Deposit
The following are the significant features and benefits of HDFC NRE Recurring Deposit:
- Interest rates are same as NRE Fixed Deposits.
- The interest and principal are tax free (only in India).
- No penalty if the monthly RD instalment is paid within 5 days of the stipulated instalment date.
- The minimum lock-in period of NRE RD is one year.
- No interest will be offered in case of closing the RD within a period of a year.
- The interest on NRE RD is compounded quarterly (subject to applicable interest rates).
Overview of HDFC Bank Recurring Deposit Schemes
The following are the different types of HDFC Bank recurring deposit schemes:
- HDFC Recurring Deposit - This RD scheme requires a minimum account balance of Rs.1000 and offers the same interest rates as that of a fixed deposit account.
- HDFC NRE RD Scheme - This RD scheme is specially designed for Non-Resident Indians and the bank enables the NRIs to open this account for a minimum tenure of one year to a maximum of 10 years.
- HDFC Dream Deposit - This account offers flexibility depositing money anytime to the customers and allows withdrawals before maturity without levying any prepayment charges.
Eligibility Criteria for Opening HDFC Bank Recurring Deposit Account
The following are the eligibility criteria for opening a recurring deposit account with HDFC Bank:
- Must be Indian resident
- NRIs (Non-Resident Indians) and IPO ()
- Minors over 10 years of age can open RD account with HDFC Bank
- Other entities that can open RD account with HDFC Bank are:
- Sole Organizations
- Partner Firms
- Companies
- Trusts
- HUFs (Hindu Undivided Family)
Documents Required to Open RD Account with HDFC Bank
The following are the documents required to open RD account with HDFC Bank:
- Passport size photograph
- KYC (Know Your Customer) documents for partnerships
- KYC Documents
- KYC and HUF declaration for HUFs
- Application form
How to Open an RD Account in HDFC?
You can open a recurring deposit account with HDFC in two ways:
- By visiting the branch
- Through net banking
If you are an existing HDFC account holder, use your net banking username and password to log in to your online account and open an e-RD right away. If you are not an HDFC account holder, you will have to open an account first. After your account is active, you can log in to net banking and open an e-RD.
Understanding Nomination Facility for Recurring Deposits
- If you have opened an RD account in a single person's name, you can either assign a new nominee or an existing nominee who has already been added to the base savings account.
- In case of an RD in a joint name, the chosen nominee should be the same as the one in base savings account.
- You can use HDFC Net Banking nomination facility in both the cases.
- If you want to add a completely new nominee, you need to visit the nearest HDFC branch, as HDFC Net Banking does not provide the facility of adding a 'new' nominee for RD.
How to Pay Installments for a Recurring Deposit (RD) Account with HDFC Bank?
Here are the steps to pay installments for a recurring deposit account with HDFC bank:
- When you create an RD account, you get to choose the tenure of the account and the investment amount.
- You will need to set your saving account for an auto debit for the entire period.
- Monthly payments should be made within the due time or else, the interest payment on your investment will be reduced as per the terms.
- If you do not have sufficient funds for the installment, HDFC Bank will provide you with a grace period of 5 days.
HDFC Bank Recurring Deposit Withdrawal Before Maturity
- The following are some of the significant details regarding pre-mature withdrawal of recurring deposit in HDFC Bank:
- In case of a premature withdrawal, you won't be eligible for the complete interest amount.
- You will receive the principal amount and a partial interest amount depending on the terms.
Login to HDFC net banking with your Customer ID and IPIN and follow the instructions mentioned below to liquidate your RD account:
- Click on 'Accounts' tab
- Click on 'Transact' on the left side of the menu
- Choose 'Liquidate RD'
- Select the RD account that you wish to liquidate
- Verify the details
- Confirm to liquidate
You will see a confirmation page with the lifquidation detrails. Once you liquidate your RD Account, the funds will be reflct on your Savings Account.
FAQs on HDFC Recurring Deposit
- What is the locking period of HDFC RD?
The locking period of HDFC Bank RD is one month which starts from the day of opening the RD account.
- When is the interest paid for HDFC RD?
You will receive the interest for HDFC Bank RD only on maturity.
- Can I get a loan against recurring deposit in HDFC Bank?
Yes, you can avail yourself of a loan against recurring deposit in HDFC Bank. The bank allows customers to take a loan up to 90% of the deposit amount value.
- Can I make partial withdrawals from my HDFC Bank Recurring Deposit account?
No, you cannot make partial withdrawals from your HDFC Bank Recurring Deposit account.
- Is a recurring deposit taxable in HDFC Bank?
Yes, recurring deposit is taxable in HDFC Bank, if the interest earned exceeds Rs.10,000 in a financial year. Tax Deducted at Source (TDS) will be deducted at 10% and Income tax will have to be paid as per the applicable tax slab.
- Does HDFC Bank offer monthly interest payouts on RD?
No, HDFC Bank does not offer monthly interest payout option for recurring deposit to its customers.
- Can I modify the installment due date or tenure of my HDFC RD?
No. You cannot change the installment due date and tenure of your HDFC Bank Recurring Deposit account.
- Can I convert my maturing recurring deposit into a fixed deposit?
Yes, you can convert your maturing recurring deposit into a fixed deposit by selecting the option at the time of opening the RD account.
- Will I get interest if I stop my RD account prematurely?
If you stop your RD account prematurely within the lock-in period, then you will not receive any interest and only the principal amount will be deposited in your account. Some banks deduct a penalty amount of 1.00% to 2.00% of the interest amount, if the RD is stopped prematurely after lock-in period.
- Can I choose my installment date for HDFC RD?
Installment date is dependent on the date of opening the Recurring Deposit account.
- Is Overdraft facility available on HDFC Recurring Deposits?
No, HDFC Bank does not provide overdraft facility for Recurring Deposits.
- Can I make partial payments on HDFC Recurring Deposits?
No, you can't make partial payments on recurring deposits.
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