The 10% TDS is applicable only when PAN details are presented else the bank deducts TDS at 20%. Moreover, HDFC Bank deducts a TDS of 10% if the interest income per annum exceeds INR 40,000 (INR 50,000 for senior citizens). The interest income that one earns from HDFC Bank RDs is taxable as per the individual’s respective income tax slab rates.

Tax and TDS: HDFC Bank RDs do not qualify for tax saving.

However, there is no limit on maximum investment.

Minimum and Maximum Deposit Amount: The minimum amount of investment in HDFC Bank RD is INR 1000, and in its multiples thereafter.

Tenure: The HDFC Bank recurring deposit tenure ranges between 6 months to 120 months, in multiples of 3 months.

Furthermore, if the investor furnishes the PAN card details, the TDS of 10% is applicable or else, a 20% TDS rate is deducted by the bank. Moreover, if the interest income exceeds INR 40,000 the bank has to deduct a TDS of 10% while the threshold limit for senior citizens is INR 50,000. Also, investors have to present this income under the head ‘ Income from Other Sources’ during their tax filing. The interest income earned from recurring deposits is taxable as per investors’ income tax slab rates. The HDFC Bank RD rate of interest differs based on the investor’s age, investment tenure, RBI policies and economic conditions in the country. The RD rates of HDFC Bank are higher than their saving account rates. One can estimate the returns from their HDFC Bank RD investment using the HDFC Bank recurring deposit calculator.

For senior citizens, the RD rates range between 5% to 7.75% p.a. HDFC Bank RD rates range between 4.5% to 7.00% p.a. The bank has a tenure of 6 months to 10 years, and the interest rates vary with the tenure. HDFC Bank RDs are investments that allow investors to save small amounts regularly.

Recurring deposit in hdfc bank