- Date : 25/09/2023
- Read: 3 mins
HDFC Bank's special edition fixed deposit (FD) interest rates for tenures of 35 and 55 months, which currently offer up to 7.25% returns, are set to decrease starting on 01-Oct-2023.
HDFC Bank introduced its limited special edition fixed deposits in May 2023, offering attractive interest rates of 7.20% on FDs maturing in 35 months and an even more enticing 7.25% on deposits maturing in 55 months. Plus, senior citizens have been enjoying an extra 0.5% on their deposits under the same terms.
As per an official communication from HDFC Bank, these special edition FD interest rates are set to be reduced. This means that if you're planning to invest at the current high rates, now is the time to act.
Starting October 1, 2023, HDFC's special FD rates will decrease from the current 7.25%.
Senior citizens enjoy additional benefits with an extra 0.5% interest on HDFC's special FDs.
Premature withdrawal rates are based on deposit date and duration.
Interest income from a special FD is taxable according to the income slab.
HDFC Bank FD Interest Rates
Are there any charges for premature withdrawal?
Effective from July 22, 2023, HDFC Bank applies interest rates at the time of premature withdrawal based on the deposit's booking date and the duration for which it remained with the bank, rather than the contracted rate.
Is income from FD taxable?
Yes, the interest income from HDFC Bank's special edition FDs is taxable. If your earnings from fixed deposits in banks exceed Rs 40,000 in a financial year, TDS (Tax Deducted at Source) is applicable.
How to Book This Special Edition FD via WhatsApp
- Save the number 7070022222 and send a WhatsApp message: 'SUB.'
- Open the WhatsApp chat and initiate a conversation by saying, 'Hi.'
- Under other services, click on "Deposit Services."
- Select "Open FD" and then click on "Explore on my own."
- Follow the link sent to you, enter your phone number and date of birth, and click on "Login."
- Enter the OTP received, select your account, input the necessary details, and click "Submit."
HDFC Bank special FD vs POTD vs NSC
- Post Office Time Deposits (POTD) offers 7% interest for 3 years, and for a slightly shorter tenure of 35 months, HDFC Bank offers an additional 0.20% for general customers.
- For 5-year deposits, POTD gives 7.5% interest compared to HDFC Bank's 7.25% for 55 months.
- Senior citizens benefit more from HDFC Bank's longer tenure, earning 7.75% interest, while POTD maintains 7.5%.
- National Savings Certificates (NSC), a government-backed scheme with a 5-year lock-in period, offers an attractive 7.7% interest rate.
The takeaway: Act now!
If you've been contemplating opening a special edition fixed deposit with HDFC Bank, act promptly before 01-Oct-2023, to secure higher interest rates. However, remember, your financial decisions should align with your long-term goals. Evaluate your options and make informed choices!
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Disclaimer: This article is intended for general information purposes only and should not be construed as investment or legal advice. You should separately obtain independent advice when making decisions in these areas.