has raised fixed deposit interest rates of select tenors of amount less than Rs 2 crore. The FD rates have been hiked by up to 20 bps. The new interest rates come into effect from May 18, 2022, according to the HDFC Bank website.
According to the HDFC Bank website, 2 years 1 day – 3 years FD will now earn an interest rate of 5.4% up from 5.2%, 3 year 1 day- 5 years FDs will earn 5.60% up from 5.45%, and 5 years 1 day – 10 years up from 5.6%.
Source: HDFC Bank website
Seniors citizens will continue to earn an additional 50 bps interest on FDs over what general investors earn.
HDFC Bank had last increased FD interest rates in April 2022.
How FD interest rate is calculated
When you open a Fixed deposit with HDFC Bank, interest on FD 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