HDFC Bank has launched Diplomat or Embassy Fixed Deposit. This fixed deposit is for certain specific customers. The newly fixed deposits follow strict guidelines regarding who can invest in it, tenure of fixed deposits, minimum fixed deposit amounts, renewals, interest rates, and premature withdrawals.
Here is everything you need to know about HDFC Bank’s Embassy Fixed Deposit.
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Who can invest in Embassy deposit
According to HDFC Bank Website, Embassy deposits are available exclusively for diplomats, non-diplomatic staff, and diplomatic missions. These are Foreign Currency (FCY) Term Deposits available only in USD (United States Dollar).
Minimum Deposit Amount in Embassy Deposits
The minimum deposit amount is USD 5,000 equivalent. Additional deposits must be made in multiples of USD 1,000. There is no mention of the maximum deposit amount that individuals can invest in Embassy deposit as per the bank’s website.
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Interest Rates & Changes on Embassy Deposits
Interest rates applicable on Embassy Deposits are published on the 1st of every month and may change based on prevailing market conditions.
The interest rates are subject to change from time to time. Please check the rates before booking of the Term deposit. The actual interest rate applied will be the one prevailing at the time of deposit processing rather than at the time of request submission.
| Period | <1 lakh | >= 1 lakh to < 5 lakh | >= 5 lakh to < 1 mio | >= 1 mio to < 20 mio | >= 20 mio to < 100 mio | >= 100 mio | Effective Date |
| 1 month | 2.20% | 2.20% | 2.20% | 2.20% | 2.20% | 2.20% | 18-Mar-25 |
| 3 months | 3.60% | 3.60% | 3.60% | 3.60% | 3.60% | 3.60% | 18-Mar-25 |
| 6 months | 4.20% | 4.20% | 4.20% | 4.20% | 4.20% | 4.20% | 18-Mar-25 |
| 1 year | 4.75% | 4.75% | 4.75% | 4.75% | 4.75% | 4.75% | 18-Mar-25 |
According to bank’s website, “Tentative reference rate (only for illustration purpose – actual rate will be shared by Treasury).”
Further, no changes to the tenure are allowed once the Embassy deposit is booked. This means that depositors cannot modify the term duration until the FD matures.
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Tenure of Embassy deposits
Embassy deposits are available for certain tenures only. Diplomatic staff can book Embassy deposits for period of 1 month, 3 months, 6 months and 1 year.
Renewal & maturity rules of Embassy deposits
Automatic renewal is not allowed for Embassy deposits. Once the fixed deposit matures, the proceeds are credited back to the original foreign currency account.
If the depositor wishes to reinvest, they must submit a new request form, including all declarations and nomination details.
Premature withdrawal & penalty
Partial or premature withdrawals are allowed but subject to a penalty. The interest rate applicable in such cases will be the rate corresponding to the actual deposit duration, minus a 0.5% penalty. If the penalty results in an effective interest rate below zero, the deposit will not earn any interest.
Maturity on non-business days
If a term deposit matures on a non-business day, the interest is calculated at the originally agreed rate on the principal amount for the extra non-business days until the next working day.
