HDFC Bank offers appealing recurring deposit schemes with competitive interest rates. As India's second-largest private sector bank, HDFC Bank Ltd., established in 1994, provides RD interest rates between 4.50% and 7% annually. Clients can start an RD account with deposits ranging from Rs. 1,000 to Rs. 14,99,900 over tenures spanning from 6 months to 10 years.

Eligibility Criteria

• Residency: Any individual residing in India, whether citizens, permanent residents, or temporary residents, can open an RD account.
• Minors: Individuals aged 10 and above may open an RD with guardian approval, promoting financial literacy and savings.
• NRIs and PIOs: Non-resident Indians and Persons of Indian Origin can open RD accounts, allowing overseas individuals to invest in Indian financial instruments.
• Organizations: Companies, partnerships, sole proprietorships, and Hindu Undivided Families are eligible, helping entities save and invest surplus funds.
• Trusts: Trusts can open RD accounts, offering a secure investment route to grow funds.
• Companies: Corporate entities may use RD accounts as part of treasury management, benefiting from stable, low-risk investment options.
• Partner Firms: Partnership firms can collectively invest and save funds through RD accounts.

Documents Required

• Application Form: Initiates account opening with necessary information.
• KYC Documents: Vital for verifying identity and address, ensuring compliance with regulations.
• JYC Documents for Partnerships: Documents establishing partnership agreements and roles.
• KYC and HUF Declaration for HUFs: KYC plus a declaration on HUF's composition and legitimacy.
• Passport Size Photo: Aids visual identification and verification.

Types of HDFC Recurring Deposit Schemes

• Interest Rates and Minimum Deposit: Offers interest similar to HDFC fixed deposit scheme, available from Rs. 1000.
• Flexibility and Prepayment Policy: Allows flexible deposit timings with no prepayment penalty charges for early withdrawals.
• NRI Options: NRIs can open NRE RD accounts with tenures from 1 to 10 years.

HDFC Bank RD Premature Withdrawal Facility

Convenient liquidation options are offered through branch visits or net banking. In premature withdrawals, the full interest isn't provided, a common practice to deter early fund access. Partial interest along with the principal is credited back, based on HDFC's terms and conditions.

Tax Exemptions on HDFC RD

TDS applies when cumulative interest on FDs and RDs crosses Rs. 40,000 in a fiscal year (Rs. 50,000 for seniors). Deducted from the linked account, insufficient balance leads to direct deduction from RD interest. Form 15G/H submission can halt TDS if income is within exemption limits.

How to Open a Recurring Deposit Account in HDFC?

Two methods: Visit a branch in person or use net banking. Existing customers can quickly set up an e-RD online, whereas new customers need to open an account first, then proceed with the e-RD.

HDFC Dream Deposit offers additional benefits, matching near fixed deposit rates in 2024. Always review terms before investing.

How to Calculate the Maturity Amount on HDFC Bank RD?

Use the formula: A = P*(1+R/N)^(Nt) where A is the maturity amount, R is the interest rate, P is the principal, N is annual interest compounding times, and t is the tenure in years.

Nomination Option for Recurring Deposits

Single-named RD accounts allow nominee selection, matching with the primary account nominee. Joint accounts must match the primary savings account's nominee. Net banking facilitates nominee management.