Quick Answer: Is There Any Penalty For Breaking FD In HDFC?

What is the best alternative to fixed deposits?

Alternatives to Fixed DepositsDebt Mutual Funds.

Debt mutual funds invest in comparatively secured investment options such as corporate bonds, government securities and money market instruments.

Liquid Funds.

Equity Funds.

Corporate Fixed Deposits.

Fixed Maturity Plans.

Government Bonds..

What happens if FD is broken before maturity?

Withdrawing an FD before maturity is known as breaking an FD. When you break the FD, you get a lower rate of interest and also pay a penalty for the premature withdrawal. … If you decide to break an FD at 10 months, the interest earned on the FD will reduce by 1%.

What is the interest of 1 lakh in HDFC Bank?

9th October 2020 – RBI keeps Repo Rate unchanged at 4%TenureRatesMaturity Amount for ₹ 1 Lakh91 days to 6 months3.50% to 4.00%₹ 1,00,873 – ₹ 1,02,0106 months 1 day to 9 months4.40% to 4.90%₹ 1,02,224 – ₹ 1,03,7209 months 1 day to 364 days4.40% to 4.90%₹ 1,03,348 – ₹ 1,04,9771 year5.10% to 5.60%₹ 1,05,198 – ₹ 1,05,7198 more rows•4 days ago

How is penalty calculated on premature withdrawal of fixed deposit?

For retail term deposits up to Rs 5 lakh, the penalty for premature withdrawal will be 0.50 per cent (all tenors). For retail term deposits above Rs 5 lakh but below Rs 1 crore, the applicable penalty will be 1 per cent (all tenors).

Is FD safe in HDFC Bank?

Private Sector Banks are as safe as Public Sector Banks. It’s extremely safe to invest in fixed deposits of ICICI Bank, HDFC Bank, Axis Bank, Yes Bank, IndusInd Bank and Kotak Mahindra Bank among others as they follow RBI rules and guidelines. Private Sector banks have lower NPAs compared to PSBs.

Which type of FD is best in HDFC Bank?

There are flexible tenure options such as short-term, medium-term, and long-term FDs. HDFC NRE & NRO fixed deposit interest rate ranges from 3.50% to 6.15%. The best interest rate offered for HDFC Bank Fixed Deposits lesser than INR 2 crore is 6.15% and 6.65% for individuals and senior citizens investing respectively.

How much time does it take to break FD?

Usually, the penalty for breaking an FD is 0.5-1% and it is applicable for the period the deposit has remained with the bank. For example: You have an FD of Rs 1 lakh for two years that earns 9.25% per annum and decide to break it after six months.

Can I break my fd online HDFC?

You can break or liquidate your Fixed Deposits that you booked online through NetBanking. For FDs that were opened at a branch, please visit your nearest branch for liquidation.

What is the penalty for premature withdrawal of fixed deposit in HDFC?

For such premature withdrawals, including sweep-ins and partial withdrawals, the Bank will levy a penalty of 1%, on the applicable rate. However, penalty for premature withdrawal will not be applicable for FDs booked for a tenor of 7-14 days.

Which bank FD rate is high 2020?

Fixed Deposit Interest Rates 2020BanksFD Interest RatesTenureHDFC3.00% – 6.25%7 days to 10 yearsPNB Housing Finance7.20% – 8.00%12 months to 120 monthsICICI Bank3.25% – 6.25%7 days to 10 yearsAxis Bank3.50% – 6.75%7 days to 10 years3 more rows

Which bank is highest FD rate?

Best FD Interest Rates in IndiaFD TenureHighest FD RateBanks with highest FD rate1 year FD7.00%IndusInd Bank, Yes Bank2 year FD7.10%Equitas Small Finance Bank3 year FD7.50%Jana Small Finance Bank5 year FD7.00%Jana Small Finance Bank

Can we break FD anytime?

According to the directives of the Reserve Bank of India, it is permissible to repay the term deposits before maturity. If one wants to break FD before the term ends, the interest will be paid as per the rate applicable on the date of deposit for the period the amount was with the bank.

What is the penalty for breaking fixed deposit?

If the depositor wants to make premature withdrawal of his FD from SBI before the completion of its tenure, the depositor has to pay a penalty of 0.05 per cent across all tenures, for any amount below 5 lakh. If you have deposited Rs 3 lakh with the bank as a fixed deposit, you will be charged Rs 1,500 as a penalty.

Can FD be broken online?

No, there is no extra amount that would be deducted if the FD is broken online. In fact, it would save you precious money to break the deposit online without visiting the branch of the bank. This is an easy and the most convenient way of breaking the deposit.

Can we take FD amount before maturity?

Withdrawal of the money in the fixed deposit account before maturity is termed as premature withdrawal. This is done if the investor needs money on an urgent basis. An investor can also withdraw the money in the fixed deposit before its maturity if there is an investment option which is better than the Fixed Deposit.

Can FD be broken in any branch?

Steps to Close an FD Offline by Visiting Branch (Premature) Visit the bank branch and get a form for premature withdrawal. Fill the form with necessary details such as name, bank account details, and FD number among others. … Once the FD is closed, the funds will be credited to your savings account.

Can we break FD before maturity in HDFC?

– According to the bank’s website, before the completion of its period (FD), HDFC Bank allows withdrawal from the fixed deposit as per the terms agreed upon at the time of placing the deposit. … 1 crore as on the date of booking the deposit the base rate is the rate applicable to deposits.

How many years FD will double in HDFC Bank?

With HDFC Fixed Deposit, you can invest your money for a tenure anywhere between 7 days to 10 years and earn interest over the deposited amount.