How fixed deposit interest is calculated

how fixed deposit interest is calculated

Domestic / NRO / NRE TERM DEPOSITS

IMPORTANT NOTES – RESIDENT CUSTOMERS:

  • Interest rates are subject to change from time to time. Applicable interest rates will be given as on the date / time of receipt of the funds by the bank. When booking FD through NetBanking please note the actual interest rate being applied on the "Confirm" screen. This screen appears before you confirm your request for opening a new FD. In order to see the latest information, we request you to clear your browsers cache to see the updated interest rates.
  • It is reiterated that the interest rate applicable on multiple deposits, across all channels, made by the same customer in a single day in one particular tenor bucket would be the rate which is applicable for the aggregate value of such deposits.
  • Only Senior Citizens / Retired Personnel (60 years and above) who are Resident Indians are eligible. The special rates are applicable only for Resident deposits .
  • When you open a Fixed deposit with HDFC Bank Interest on Term Deposits is calculated as below

1) On a Quarterly basis for deposits >= 6 months

2) Simple interest is paid at maturity for deposits < 6 months.

3) Cumulative Interest/ re-investment interest is calculated every quarter, and is added to the Principal such that Interest is paid on the Interest earned in the previous quarter as well.

4) In case of monthly deposit scheme, the interest shall be calculated for the quarter and paid monthly at discounted rate over the Standard FD Rate
  • Tax at source is deducted as per the Income Tax regulations prevalent from time to time.
  • The Bank computes interest based on the actual number of days in a year. In case, the Deposit is spread over a leap and a non-leap year, the interest is calculated based on the number of days i.e.,366 days in a leap year & 365 days in a non leap year.The period of Fixed Deposit is calculated in number of days.
  • The Minimum tenure for earning FD interest is 7 days.
  • The interest rate applicable on premature closure of deposits (all amounts) will be lower of:

    a) The base rate for the original/contracted tenor for which the deposit has been booked

    b) The base rate applicable for the tenor for which the deposit has been in force with the Bank

    The base rate is the rate applicable to deposits of less than Rs.1 Cr as on the date of booking the deposit.
  • The penalty on premature closure of Fixed Deposits including sweep-in and partial closures has been fixed by the Bank at the rate of 1% except for the FDs booked for the tenor of 7-14 days.
  • As interest rates are subject to change without prior notice, depositor shall ascertain the rates on the value date of FD
  • IMPORTANT NOTES – NRI CUSTOMERS:

    NEW Customers: Click here to talk to our Executive!!

    EXISTING Customers: Click here to book a deposit online through NetBanking!!

    • Interest rates are subject to change from time to time. Applicable interest rates will be given as on the

      date / time of receipt of the funds by the bank. When booking FD through NetBanking please note the actual interest rate being applied on the "Confirm" screen. This screen appears before you confirm your request for opening a new FD. In order to see the latest information, we request you to clear your browsers cache to see the updated interest rates.

    • The Senior Citizen Rates are only for Resident Indians and do not apply to NRIs.
    • The Bank computes interest based on the actual number of days in a year. In case, the Deposit is spread over a leap and a non-leap year, the interest is calculated based on the number of days i.e.,366 days in a leap year & 365 days in a non leap year.The period of Fixed Deposit is calculated in number of days.
    • The Interest on Term Deposits for the deposits booked by us, is calculated as below:

    1) Fixed Deposits for the tenor < 6 months. Simple Interest is paid

    2) Fixed Deposits for the tenor >= 6 months with Quarterly Interest Payout option. On a Quarterly basis

    3) Fixed Deposits for the tenor >= 6 months with Monthly Interest Payout option. Interest is calculated for the quarter and paid monthly at a discounted rate over the standard deposit rate

    4) Fixed Deposits for the tenor >= 6 months with Interest Reinvestment option. Cumulative Interest for the Quarter is added to the Principal in subsequent quarter and interest is calculated on total amount

    [The paid interest amount (in case of monthly/quarterly/half yearly payout mode) will be adjusted against Principal Balance of the Deposit incase of Premature withdrawal of the NRE Deposit before 1 year]

  • Tax at Source is deducted as per the Income Tax regulations prevalent from time to time (applicable on NRO Fixed Deposits)
  • The interest rate applicable on premature closure of deposits (all amounts) will be lower of.
    • The base rate for the original/contracted tenor for which the deposit has been booked
    OR
  • The base rate applicable for the tenor for which the deposit has been in force with the Bank
  • (The base rate is the rate applicable to deposits of less than Rs.1 Cr as on the date of booking the deposit.)

  • The Minimum tenor for earning the interest on NRO Fixed Deposit is 7 days.
  • The Penalty on premature closure of NRO Fixed Deposits including sweep-in and partial closures has been fixed by the Bank at the rate of 1% except for the tenor of 7-14 days.
  • The Minimum tenor for earning the interest on NRE Fixed Deposit is 1 year. No Interest will be paid if the NRE Deposit is prematurely withdrawn before 1 year.
  • No Penalty will be levied on premature closure of NRE Fixed Deposit.
  • Partial premature withdrawal and sweep-in facility is not allowed for fixed deposits booked for 5 Crore and above.
  • As interest rates are subject to change without prior notice, depositor shall ascertain the rates on the value date of FD.
  • For rates greater than equal to Rs. 5 Cr please click here

    Source: www.hdfcbank.com

    Category: Bank

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