HDFC Bank, a private lender, recently revised its interest rates on non-withdrawable fixed deposits. The bank announced on its website that the interest rates on non-withdrawable fixed deposits have been altered effective November 27, 2023. This comes barely a week before the RBI's next bimonthly monetary policy meeting. The Monetary Policy Committee (MPC) of the central bank is expected to hold the repo rate steady in the face of promising inflation data.
On non-withdrawable fixed deposits, HDFC Bank is offering a maximum yield of 7.45 percent for tenures of one to two years and 7.2 percent for tenures of two to ten years. A non-withdrawable FD is a secure investment choice that offers a better rate of return than a traditional fixed deposit account. These fixed deposits do not allow for early withdrawal. This means that the depositor cannot close these schemes before the term of the deposit expires.
Banks permit premature withdrawal on rare instances, such as when directed by any judiciary/statutory/bankruptcy and/or regulatory authority, or when settling a deceased claim.
The Bank will not pay interest on the principal amount of these deposits if they are withdrawn prematurely (unless in the case of a deceased claim settlement). Any interest that has been credited or paid up to the date of the premature closure will be taken from the principle deposit.
Non-withdrawal FD rates at HDFC Bank (Rs 2 crore or more)
One year to
15 months to
18 months to
7.45% from 21 months to 2 years
7.2 percent from 2 years 1 day to 3 years
7.2 percent from 3 years 1 day to 5 years
7.2 percent from 5 years 1 day to 10 years
In instance, the State Bank of India's 'Sarvottam' scheme offers an interest rate of 7.10% for one year and 7.40% for two years. It is 7.60% for one year and 7.90% for two years for older citizens. The minimum deposit amount is Rs 15 lakh, and the maximum deposit amount is Rs 2 crore.
SBI's 'Sarvottam' programme offers 7.05 percent for one year and 6.90 percent for two years on amounts ranging from Rs 2 crore to Rs 5 crore. 7.55 percent for one year and 7.40 percent for two years for senior citizens.
