Searching for an efficient investment platform like HDFC RD Calculator from the plethora of options available in the market can be quite a bewildering task. However, if you are planning to finance in a risk-free alternative, a Recurring Deposit is a kind of investment you should assuredly put your money in.
Continue reading to understand comprehensively about Recurring Deposits and all its attributes you would want to know before investing in one. Following are the topics which will be covered under this article:
What is a Recurring Deposit?
A Recurring Deposit or RD is one of the safest, low-risked and a remunerative type of investment. It allows an individual to make small deposits over frequent intervals under a specified duration to earn substantial interest on their savings. Therefore, Recurring Deposits allow you to make payments in installments rather than depositing the whole amount at once. The characteristics of RD plans are similar to that of FD, but Recurring Deposits offer comparatively higher flexibility in many of the aspects.
Also Read: PF Calculator – Know your PF Interest
HDFC Recurring Deposits (HDFC RD)
Housing Development Finance Corporation or HDFC stands amidst the topmost coherent Private Banks across India which excels in committing utmost service and satisfaction towards its customers. HDFC provides its investors with up to 5.75% rate of interest over Recurring Deposits.
HDFC RD is a well-suited plan for individuals with shaky or less amount of income as it enables its customers to finance their excess savings amount in certain intervals for a predetermined duration of time to do timely accumulation of their money, as well as to earn collected interest along with the principal amount on it, after the successful end of its tenure.
HDFC offers kindred rates of interest on RD accounts, as that on FD accounts, offering the Recurring Deposit investors an opportunity to avail the interest on same rates in spite of investing in smaller amounts, as compared to Fixed Deposit plans.
HDFC RD Account
- HDFC allows its investors to obtain Recurring deposits by just paying a minimum of Rs. 1000.
- Senior Citizens are offered escalated interest rates reaching till 6.25%.
- Service for nomination is available, which results in transfer of money to the nominee during an unfortunate circumstance of your death.
- The tenure can be set anywhere between 6 to 120 months, as per the investor’s choice and comfort.
- Rate of interest on Recurring Deposits are offered up till 5.75% and are similar to Fixed Deposit interest rates.
- On HDFC Recurring Deposits, the interest is constituted quarterly.
- HDFC Bank imposes 1 month lockdown duration where the depositor is not permitted to withdraw any amount.
- TDS charges are drawn as per the applicable tax rules while investing in a RD.
HDFC RD Calculator
Before planning to invest in a Recurring Deposit plan, there are various questionable factors which might cross your mind, like how much of an investment you should make, what will be its return benefits and rate of interest, etc. This is so, because the Recurring Deposit plan has multiple complicated elements, involving quarterly calculation of interest, which at times makes it exhausting for an individual to figure the exact maturity sum they are going to receive.
Therefore, to resolve these woes and generate a much simpler, yet efficient process to acquire the desired Recurring Deposit plan as per one’s financial comfort and requirements, HDFC offers an online tool called as Recurring Deposit Calculator.
This facility can be used to accumulate the principal amount you would obtain by the end of tenure of your RD. A charge free tool, the HDFC Bank Recurring Deposit interest rate calculator just requires primary information for calculating the returns in a single click and can be used various times to calculate profits amongst different HDFC Recurring Deposit plans.
RD Calculator HDFC Benefits:
- HDFC RD Calculator is entirely a free-of-charge tool to use, allowing individuals to take use of it multiple times for the purpose of evaluating different acquirable sum amounts from various Recurring Deposit plans.
- This tool performs complex evaluations in just a single click, saving the precious time of investors in performing such calculations themselves.
- The RD Calculator by HDFC ensures error-free and accurate evaluation.
- It also benefits individuals in determining their financial goals by giving a sum of returns they would obtain during maturity of the given Recurring Deposit
HDFC Deposits Important Points
- Tenure – HDFC provides comparatively more interest rates on Recurring Deposits which are made for a longer period of time than those made for shorter durations.
- Primary sum of payment – HDFC Bank offers an escalated rate of interest to investors who pay a larger sum during the commencement of a Recurring Deposit.
- Interest rate – The interest rate of a Recurring Deposit directly affects its returns at the time of plan’s maturity. Interest rate, however, is dependent upon the tenure and the amount of deposit paid during the commencement of the RD.
How to use the HDFC RD Calculator?
It is utterly simple to use the HDFC Recurring Deposits Interest Rates Calculator for processing the evaluation of your desired maturity amount. To make it more convenient to understand and follow, given below is the step-by-step procedure you should pursue for achieving the same.
- Step 1 – Find out and visit the official website of HDFC Bank.
- Step 2 – Under ‘Product type’ and ‘Product’ drop down tabs, choose ‘Deposits’ and ‘Recurring Deposit’ respectively and then click on the ‘know more’ button.
- Step 3 – In the ‘Tools and Calculators’ section, open the ‘Recurring Deposit Calculator’ option.
- Step 4 – Enter the required information involving deposit amount and the desired duration for which you wish to acquire RD along with the date of commencement of the same. In case if you are a senior citizen, select ‘yes’ otherwise click on ‘no’.
- Step 5 – After putting in the above mentioned details, the calculator will display the rate of interest based on your selected amount and duration.
- Step 6 – Select ‘Calculate’ to review the sum returns you can obtain on the RD as per information provided.
How does HDFC RD Calculator work?
The HDFC Bank uses the same generic formula to perform the calculation for all kinds of Recurring Deposits, inconsiderate of deposited amount or duration. It is –
M = R [(1+i) n – 1]/ 1- (1+i) -1/3
- M = Maturity amount
- R = RD installments
- n = Duration (in years)
- i = Interest rate
HDFC RD Interest Rates 2020
Note: Increased rate of interest is applicable for only Resident Senior Citizens. Table shows HDFC RD Interest Rates as on may 2020.
|Duration||General Rate of Interest (p.a.)||Rate of Interest for Senior Citizens (p.a.)||Rate of Interest for NRIs (p.a.)|
Let us understand HDFC RD Interest Rates with an example. In the below table you can see the Maturity Amount for a non Sr Citizen with following HDFC RD Interest Rates slab:
|No of Months||Duration||Maturity Amount (If Investment Amount is INR 1,000)||Maturity Amount (If Investment Amount is INR 10,000)|
|15||1 Year 3 Months|
|27||2 Years 3 Months|
|39||3 Years 3 Months|
|90||7 Years 6 Months|
- HDFC Domestic, NRO and NRE Savings Rates
Interest Rate for Savings Bank deposits account with effect from 15th April, 2020 –
|Savings Bank balance||Revised Rate w.e.f 15th April, 2020|
|Rs. 500 Crore or above||RBI Repo rate + 2 basis points|
|Rs. 50 lakh or above but less than Rs. 500 Crore||3.75%|
|Below Rs 50 lakh||3.25%|
- HDFC RFC Savings (for Returning NRIs) Interest Rate
RFC Savings Account Interest Rates as in effect from July 1, 2017 –
HDFC Bank RD Calculator – Open RD Account
There are multiple ways to initiate the process of opening an HDFC RD Calculator Recurring Deposit account involving SMS, Online and Offline platforms.
- Via SMS
- Write ‘BOOKRD ’ and send an SMS to 5676712
- Step 1- Find out and visit the official website of HDFC Bank and login.
- Step 2 – Under the request tab, click on the ‘accounts’ button and select ‘Open Recurring Deposit’.
- Step 3 – Choose your HDFC branch and enter the desired RD sum, tenure, nominee details etc and then press the ‘Confirm’ button.
- Step 4 – For future assistance, download the Recurring Deposit Advice.
- You will be required to visit your HDFC Bank Branch to open a RD account along with all the above mentioned necessary documents and their photocopies. The expert assistance will hence, provide you further guidance into the process of rightly acquiring a Recurring Deposit account.
HDFC Eligibility Criteria:
- Private & Public Limited Companies
- Hindu Undivided Families (HUF)
- Trusts and Societies
- Resident citizens
HDFC RD Necessary Documentation:
- Identity Proof – Passport, Voter ID card, Driving license, etc.
- Address Proof – Electricity bill, Aadhaar Card, Telephone bills etc.
- PAN Card
- Passport-size photographs
Note: In case of a nominee, KYC documents of them will also be required.
Factors affecting HDFC RD Interest Rates
There are certain factors which have a direct impact on Interest Rates of the HDFC Recurring Deposits. These are –
- Inflation – Interest rates of RD escalate with an increase in inflation, leaving a beneficial imprint on it.
- Recession – The interest rates get lowered during recession as RBI provides funds to the market, resulting in increased liquidity and lesser credit demand.
- RBI Policies– The interest rates get affected by a change in Cash Reserve Ratio (CRR) and repo rate as stated by the RBI.
- Present scenario of the economy – Banks offer increased interest rates during high credit demand and high credit demands are a consequent result of a flourishing economy.
HDFC RD Premature Withdrawal
The following points should be kept in consideration before deciding to make a premature withdrawal under an HDFC Recurring Deposit.
- If an investor opts to take out his/her deposit before completion of a year from the commencement of its RD, no interest will be provided.
- If the RD is prematurely cancelled or taken back within a month of its commencement, no penalty charges will be imposed and the principal amount is refunded back.
- The rate at which the interest will be paid shall be reduced as compared to the promised interest rate during the time of acquisition of RD.
Penalty for overdue under HDFC RD Account
As per the predetermined criteria of HDFC Bank, a certain amount might be charged as a penalty fee on deposits made after the due date of installment under Recurring Deposit.
HDFC RD FAQs
How is the RD Interest Paid?
The interest earned on your investment shall be payable only upon the maturity of your Recurring Deposit
Can I withdraw my amount pre maturely?
Yes, you can withdraw your deposits made to your RD but it can attract some penalties.
If you withdraw your amount in less than 3 months, you earn zero interest.
If you withdraw your amount post 3 months, banks can apply penalty up to 2% on your earnings. Post this your account also gets closed.
What are HDFC RD Interest Rates?
HDFC RD Interest rates range from 4.5% to 6.25% based upon your age and tenure. If you are senior citizen, the interest rates are roughly 0.5% more than normal. If you deposit for longer tenure, you tend to get higher interest rates.