HDFC Bank revises interest rates on non-refundable deposits

Investment

oi-Vipul Das

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Private sector lender HDFC Bank has revised interest rates on non-refundable deposits. Fixed deposits do not allow premature withdrawal, which means that the depositor cannot terminate the account before the expiry of the term of the deposit. On March 1, 2022, the bank revised the interest rate on this deposit, and the new rates will apply to domestic/NRE/NRO time deposits of an amount equal to or greater than RS. 5 crore.

Non-refundable deposits HDFC Bank

In unusual circumstances, such as in the case of instructions from judicial/statutory and/or regulatory bodies or claims settlement bodies, the bank may authorize the early withdrawal of non-recoverable term deposits. However, in these cases, except for the settlement of a deceased claim, the bank will not pay interest on the principal amount of these deposits if they are withdrawn prematurely and, therefore, any interest paid up to the premature closing date of the deposit will be recovered.

As per guidelines set by HDFC Bank “In case of early withdrawal of these DFs due to death claim, interest will be paid to the claimant. The applicable interest rate on such withdrawal will be the contractual rate or base rate applicable for the period that the deposit has remained with the bank, whichever is lower.The base rate is the rate applicable to deposits of 5 crore on the date of reservation of the deposit.

Swiping and partial withdrawals are not permitted on fixed non-withdrawable deposits, and the deposit will be recorded with a maturity instruction of “Do Not Renew”. Non-recoverable deposit is only available for amounts of 5 crores and above, and the deposit has a minimum term of 91 days. For deposits over six months, interest is calculated quarterly and tax is withheld at source in accordance with guidelines set by the income tax department.

From 1 March 2022, the base rates below are applicable on non-recoverable minimum deposits of Rs 5 Cr.

HDFC Bank Non-Redeemable Deposit Interest Rates

Interest rates applicable to non-redeemable domestic/NRO/NRE time deposits for amounts equal to or greater than Rs 5 Cr from 1 March 2022 are shown below.

Tenors Rs 5 Cr to Rs 200 Cr and more
91 days 3.75%
6 months 1 day 4.00%
9 months 1 day at 4.15%
1 year to 4.55%
15 months for 4.55%
18 months for 4.55%
21 months to 2 years 4.55%
2 years 1 day to 3 years 4.60%
3 years 1 day to 5 years 4.70%
5 years 1 day to 10 years 4.70%
Source: Bank website

Article first published: Sunday, March 13, 2022, 12:45 p.m. [IST]

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