Hdfc Bank Interest Rate for Senior Citizens
HDFC Bank, one of the leading private banks in India, offers various fixed deposit schemes including a recurring deposit scheme for senior citizens. This scheme is specially designed for senior citizens who want to invest their savings in a safe and secure manner and earn a regular income.
HDFC Bank Recurring Deposit Scheme for senior citizens is a safe and secure investment option that offers attractive interest rates and flexible tenure options. It is an excellent way for senior citizens to earn a regular income and secure their savings for the future. If you are a senior citizen and want to invest your savings in a safe and secure manner, you should consider opening an HDFC Bank Recurring Deposit account.
HDFC Bank Senior Citizen RD Interest Rates 2024
HDFC Bank offers attractive interest rates on its Recurring Deposit Scheme for senior citizens. The interest rates vary depending on the duration of your investment and the current interest rate ranges from 5% to 7.75% per annum as on June 2024. The interest rate is fixed for the entire duration of the deposit, which means you will earn the same rate of interest until the maturity of your deposit.
Interest is paid only on maturity. The Deposit will be due for repayment and will mature on completion of the contracted tenure.
| RD Tenure | Interest Rate |
|---|---|
| 6 Months | 5.00% |
| 9 Months | 6.25% |
| 12 Months | 7.10% |
| 15 Months | 7.60% |
| 24 Months | 7.50% |
| 27 Months | 7.50% |
| 36 Months | 7.50% |
| 39 Months | 7.50% |
| 48 Months | 7.50% |
| 60 Months | 7.50% |
| 90 Months | 7.75% |
| 120 Months | 7.75% |
Features of the HDFC Bank Senior Citizen RD
| Canara Bank Senior Citizen RD | Features |
|---|---|
| Eligibility | Applicant must be of 60 years of age or above |
| Amount of RD | Minimum Rs.500/- per month and in multiples of Rs.100 thereof, maximum Rs.2,99,99,900 per month |
| Tenure | Minimum 6 months and Maximum 10 years (multiples of 3 months) |
| Nomination Facility | Available |
| Loan Facility | Available upto 90% of the available deposit balance |
| TDS | Applicable as per prevailing Income Tax rules |
| Lock in Period | Minimum lock-in period of one month |
HDFC Bank Senior Citizen RD Amount
The minimum deposit amount for HDFC Bank Recurring Deposit Scheme for senior citizens is as small as Rs.500 (and in multiples of Rs.100 there after) and as large as Rs.2,99,99,900 per month. You can choose the amount that you want to deposit each month and the minimum deposit period is six months. Payment to the RD account can be made directly from your savings account.
| HDFC Bank Senior Citizen RD | Amount |
|---|---|
| Minimum monthly instalment | Rs.500 |
| Additional monthly instalment | Rs.100 thereof |
| Maximum monthly instalment | Rs.2,99,99,900 |
HDFC Bank Senior Citizen RD Account Tenure
HDFC Bank Recurring Deposit Scheme for senior citizens offers flexible tenure options, ranging from 6 months (and in multiples of 3 months thereafter) to 10 years. You can choose the tenure as per your convenience and the interest rate varies depending on the duration of your investment.
HDFC Bank Senior Citizen RD Account Features
- The interest rates for recurring deposits will be the same as the rate applicable for a simple Fixed Deposit. Hence, for a much smaller investment per month, you can get interest rates equal to that of regular Fixed Deposits.
- Interest rate on RD is locked-in for the entire tenure. Theefore, there is no need to worry about a fluctuation in interest rates in future.
- The installment amount once fixed cannot be altered at any later date.
- Guaranteed returns on investment.
- Option to choose the deposit amount and period.
- Partial payment of installments is not allowed.
- Nomination facility available.
- Easy liquidity options.
HDFC Bank Senior Citizen RD Eligibility
Resident individuals who are aged 60 years or above.
Calculation of the Maturity Amount on HDFC Bank RD
The formula for calculating the RD amount is:
A = P*(1+R/N)^(Nt)
Where P is the principal deposited, R is the rate of interest, N is the tenure in months and t is the applicable tenure.
HDFC Bank Senior Citizen RD Account Penalty and Charges
There are no charges for opening an HDFC Bank Recurring Deposit account. However, if you withdraw the deposit before maturity, a penalty will be charged as per the bank's rules.
HDFC Bank Senior Citizen RD Account Lock in Period
HDFC Bank Senior Citizen RD account has a minimum lock-in period of one month.
If you close this account prematurely, you will not receive any interest and only principal amount will be returned to you.
How to Open HDFC Bank RD Account for Senior Citizens?
You can open an HDFC Bank Recurring Deposit account for senior citizens through any of the following ways:
- Visit the nearest HDFC Bank branch and submit the required documents.
- Open an account online through HDFC Bank website via Net Banking.
- Open an account online through HDFC Bank website via Mobile App.
- Call HDFC Bank customer care number and request for an account opening.
- Open Recurring deposit via SMS
How to Open HDFC Bank RD Account via Net banking?
To open HDFC Bank Recurring Deposit through net banking, follow the steps mentioned below:
- Log in to your Net banking account using login credentials i.e customer id and password
- Click on 'Transact' appearing on the right-hand side of the page
- Click on 'Open Recurring Deposit'
- Key in the required details
- Enter the RD amount and RD tenure
- Click 'Continue' to view the details
- Verify the details
- After verifying, confirm to open an HDFC Bank RD account
How to Open HDFC Bank RD Account via Mobile App?
- Login to the Mobile Banking App using your login credentials.
- Select the 'Deposits' option under 'SAVE'.
- Click on 'Open Recurring Deposit'.
- Fill in the required details such as account number, etc.
- Click on 'Continue' button.
- Your RD account will be instantly created.
How to Open HDFC Bank Recurring Deposit via SMS?
Book Recurring deposit instantly by sending text message from your registered mobile number to 5676712:
Option (1): Type text BOOKRD and send it to 5676712 from your registered mobile number. Through this option the RD will be booked with Rs 1000 for 12 months by default.
Option (2): Type text BOOKRD <Amount> and send it to 5676712 from your registered mobile number. Through this option the RD will be booked for the amount mentioned with default tenure as 12 months.
For Example: BOOKRD 5000 to 5676712. RD will be booked for the Rs. 5000 with default tenure as 12 months.
Option (3): Type text BOOKRD <Amount> <Tenure> and send it to 5676712 from your registered mobile number. Through this option the RD will be booked for mentioned amount & tenure.
For Example: BOOKRD 5000 24M to 5676712. RD will be booked for the Rs.5000 with tenure as 24 months.
Important Notes regarding opening of RD via SMS
- For opening of RD via SMS, customers must be registered on SMS banking
- For opening of RD via SMS, account needs to be registered in SMS banking
- Recurring deposit will get booked on account home branch registered for SMS banking and Holding Pattern will be same as CASA account
- RD booked by SMS Banking does not give the option for nominee registration but it can be updated from branch.
- Recurring deposit booked using SMS banking will by default get booked with maturity instruction as maturity proceeds to be credit to CASA account
- RD Amount: Min 1000 (in multiples of 100 thereafter) & Max 10,000
- RD Tenure: Min 6 months (in multiples of 3 months thereafter) & Max 120 months
- Transaction Limit: You can make maximum 5 successful transactions per day for RD
HDFC Bank Senior Citizens RD Calculator
You can use HDFC Bank Senior Citizens RD calculator to help you estimate your returns. Here's how you can use it:
- Monthly Investment Amount: Decide how much you want to invest every month.
- Tenure: Choose the duration for which you plan to invest in the RD.
- Interest Rate: HDFC Bank currently offers an interest rate as mentioned in the above table based on its tenure.
Using the HDFC Bank RD Calculator, you can calculate:
- The total amount deposited by you at the end of the tenure.
- The maturity value (total corpus) at the end of the tenure.
- The aggregate interest amount which you will earn over the investment period.
Withdrawal of HDFC RD Before Maturity
HDFC RD account has a minimum lock-in period of 1 month. In the case of premature closure within a month, no interest will be paid to the depositor and only his principal amount will be returned.
RD cannot be liquidated partially and can only be fully withdrawn before maturity. From 1st Dec'06, the interest rate applicable for premature closure of RD will be lower of:
- The original rate at which the deposit has been booked (OR)
- The base rate applicable for the tenure for which the deposit has been in force with the Bank
Here the base rate is the rate applicable to deposits of less than Rs. 2 Crores as on the date of booking the deposit.
Maturity Rules for HDFC Bank Senior Citizens RD
- Interest under HDFC Bank Senior Citizens RD will be paid only on maturity along with the deposits.
- The RD will mature only on the completion of the tenure for which it is booked, even if there are installments still to be paid.
- The maturity value mentioned on the RD confirmation advice is subject to the payment of all installments on time.
- The maturity value will change if there is any delay in the payment of monthly installments.
Rules & Regulations for Recurring Deposit
- Depositor Needs to fulfil KYC norms as per RBI directive.
- Senior Citizen interest rates are applicable only for domestic deposits.
- The depositor has to deposit the monthly installments regularly till the maturity of RD account.
- In case the depositors failed to deposit Installment regularly, penalty will be levied.
- The maturity proceeds of the RD account is usually paid with in 30 days from the date of last instalment deposited.
- It is very important to submit your maturity instructions which should be clear. If you want the RD amount to be credited to your savings account or to be used in opening of a fixed deposit, you need to inform the bank in advance.
- Standing instruction will be accepted for transfer of monthly installments from other accounts maintained by the account holder.
- Penalty will be applicable, if the amount is withdrawal before maturity.
Factors to Consider Before Applying for Recurring Deposit
- Tenure of recurring deposit account
- Interest rate offered by the bank
- Conditions for premature withdrawal
Documents Required for Hdfc Bank RD for Senior Citizens
- Identity Proof (any one): Passport, Driving License, Voter ID Card, Government Approved College/university I.Card, Government/Semi government/Department I.Card Aadhar Card
- Address Proof(any one): Electricity Bill (not more than 2 months old), BSNL Landline Telephone Bill (not more than 2 months old), Municipal Tax Bill, Voter ID card, Aadhaar card, or passport, other proof acceptable by Bank.
- Passport Size Photograph: 2 Copies
- Pan Card or / Form 60 or 61 (if customer does not have PAN Card)
- Form 15H to avoid TDS
- Age Proof Certificate: which can be a birth certificate or any government-issued document that states the applicant's age.
Rules for Renewal of Recurring Deposit
Renewal of RD is a simple process. Renewal of the RD is one of the most common options available to the depositors after the maturity of an RD. Senior citizens should be aware of the rules for the renewal of RDs before investing in them. They should check the tenure, renewal options, terms and conditions, premature renewal, etc. to make an informed decision. A well-researched investment can provide financial security and peace of mind to senior citizens.
- Depositors can choose to renew their RD for the same duration or for a different duration.
- Depositors have the facility to renew their RD either online or by visiting their bank branch.
- No additional documentation is required for renewal if the RD is automatically renewed or if you are renewing it through the bank's online platform. However, minimal documentation may be needed if you are doing manual renewal at the branch.
- Some banks have the option of auto-renewal of RD. Auto-renewal of RD means that the renewal of the RD will happen automatically on the date of maturity for the same duration as the original RD. The interest rate applicable will be the prevailing rate at the time of renewal.
- The interest rate for the renewed RD will be based on the rates prevailing at the time of renewal. It is important to know that the current rates may differ from the rates of your original RD.
- If you need funds, some banks allow partial withdrawal of the RD amount before renewal.
- The interest earned on the renewed RD will be subject to tax and you need to consider the same for the accounting purpose.
Safety of Recurring Deposit Funds
The Deposit Insurance and Credit Guarantee Corporation, a subsidiary of the central bank, guarantees investments in recurring deposits of up to Rs 5 lakh for all the member banks.
Tax Benefit under Hdfc Bank RD for Senior Citizens
It is important to note that senior citizens can claim a tax deduction of up to Rs. 1.50 lakh under Section 80C of the Income Tax Act, 1961, on the amount invested in RD schemes for senior citizens, if the RD tenure is atleast 5 years. This tax benefit makes these schemes more attractive to senior citizens who are looking for safe investment options that offer tax benefits.
TDS Under Hdfc Bank RD for Senior Citizens
Senior citizens need to understand the tax implications of investing in RDs before making any investment in RD. Tax Deducted at Source (TDS) is a tax that is deducted from the interest earned on an RD. In this article, we will discuss the TDS rate on Recurring Deposit for senior citizens.
The TDS rate on Recurring Deposit for senior citizens is 10% of the interest earned, provided that the interest income is more than Rs. 50,000 per annum.
This limit was increased from Rs. 10,000 to Rs. 50,000 in the 2018 Union Budget, providing relief to small depositors. It is important to note that this limit is applicable to the total interest earned by the senior citizen in a financial year, including interest from savings accounts, fixed deposits, and recurring deposits.
Senior citizens can avoid TDS by submitting Form 15H to the bank. This form is a declaration stating that the senior citizen's total income for the financial year is below the taxable limit, and hence no TDS should be deducted. It is important to note that Form 15H needs to be submitted to each bank where the senior citizen holds an RD account.
If TDS is deducted from the senior citizen's RD account, they can claim a refund by filing their income tax return. The TDS amount will be considered as advance tax paid by the senior citizen and will be adjusted against their final tax liability. If the TDS amount is more than the final tax liability, the senior citizen can claim a refund of the excess amount.
Role of Senior Citizens RD in Financial Planning
No Risk of Loss
RDs does not have any risk of principal loss unlike stocks or mutual funds. The invested amount is safe and the returns are assured. This feature is particularly important for retirees who cannot afford to lose their savings.
Creation of Big Corpus
The maturity amount from RDs can be used as a supplementary income after retirement. It can be used to meet regular expenses, medical bills or any other financial needs.
Tax Benefits
Investments in RDs for the tenures 5 years and above also come with certain tax benefits under Section 80C of the Income Tax Act for providing additional financial relief for retirees.
Supplementary Income
If you invest the funds accumulated under RD account in any systematic withdrawal plan or monthly income plan, then you can use it as an additional monthly income in addition to any pension income which you receive.
Flexible Tenure
RDs offer flexibility in selecting tenure which allows senior citizens to choose a period according to their financial goals. Whether it's short-term goals or long-term targets, the investors can select an RD tenure that suits their needs so that the funds can be available when required.