Like many other major banks in India, HDFC Bank also offers appealing interest rates on fixed deposits, guaranteeing returns irrespective of market fluctuations.
Read More: SIP Calculator: How to make Rs 1 cr in 10 years with Systematic Investment Plans
Term deposits, commonly referred to as fixed deposits, are a favored investment choice for numerous investors. This investment vehicle involves depositing a predetermined sum of money for a specified duration, which can range from several months to multiple years.
By placing your funds in a fixed deposit, you can enhance your savings, ensuring a financially stable future. Like many other major banks in India, HDFC Bank also offers appealing interest rates on fixed deposits, guaranteeing returns irrespective of market fluctuations.
Below are seven essential points to consider before investing your money in the the fixed deposit of any bank in India, including HDFC Bank:
Interest rates: Typically, the interest rates associated with term deposits are more favorable than those of standard savings accounts. The rate you earn on your term deposit is influenced by the investment amount, the duration of the term, and the current market conditions.
Fixed term: Term deposits are characterized by a fixed duration, meaning that early withdrawal of funds is not permitted without incurring a penalty.
Guaranteed return: One of the key advantages of term deposits is the assurance of a return on your investment, categorizing them as a low-risk investment option.
No market risk: In contrast to equities or mutual funds, term deposits are insulated from market volatility, rendering them a secure investment choice.
Early withdrawal penalty: Should you choose to withdraw your funds prior to the conclusion of the term, you may face an early withdrawal penalty, which could diminish your overall earnings.
Automatic rollover: Many term deposits feature an automatic rollover provision, transitioning into a new term upon the completion of the initial term, unless you provide alternative instructions to the financial institution.
Diversification: Although term deposits represent a secure investment avenue, it is crucial to diversify your investment portfolio by incorporating other asset classes, such as equities, bonds, and real estate, to effectively pursue long-term financial objectives.
In summary, term deposits or fixed deposits can serve as a viable investment option for individuals seeking a secure and guaranteed return. Nevertheless, it is vital to comprehend the specific terms and conditions associated with the deposit and to explore additional investment avenues for the purpose of diversification.
At HDFC Bank, you can initiate a fixed deposit with a minimum investment of Rs 5,000. Choose an amount that suits your financial goals and select from a variety of tenures that align with your needs.
Fixed Deposit Interest Rate Less Than 3 Cr
| Tenor Bucket | < 3 Crore | |
|---|---|---|
| Interest Rate (per annum) | **Senior Citizen Rates (per annum) | |
| 7 – 14 days | 3.00% | 3.50% |
| 15 – 29 days | 3.00% | 3.50% |
| 30 – 45 days | 3.50% | 4.00% |
| 46 – 60 days | 4.50% | 5.00% |
| 61 – 89 days | 4.50% | 5.00% |
| 90 days < = 6 months | 4.50% | 5.00% |
| 6 months 1 days < = 9 months | 5.75% | 6.25% |
| 9 months 1 day to < 1 year | 6.00% | 6.50% |
| 1 year to < 15 months | 6.60% | 7.10% |
| 15 months to < 18 months | 7.10% | 7.60% |
| 18 months to < 21 months | 7.25% | 7.75% |
| 21 months – 2 years | 7.00% | 7.50% |
| 2 Years 1 day to < 2 Year 11 Months | 7.00% | 7.50% |
| 2 Years 11 Months – 35 Months | 7.35% | 7.85% |
| 2 Years 11 Months 1 day < = 3 Year | 7.00% | 7.50% |
| 3 Years 1 day to < 4 Years 7 Months | 7.00% | 7.50% |
| 4 Year 7 Months – 55 months | 7.40% | 7.90% |
| 4 Year 7 Months 1 day < = 5 Years | 7.00% | 7.50% |
| 5 Years 1 day – 10 Years | 7.00% | 7.50% |
