HDFC Bank has launched a special fixed deposit scheme called the Diplomat FD Scheme, which is designed for a specific group of customers.
This includes staff of foreign embassies in India, non-diplomatic embassy staff, and diplomats.
The unique feature of this scheme is that deposits are made in US dollars, and the tenure options are flexible. Here are all the details about the scheme:
No Automatic Renewal
The Diplomat FD Scheme offers the flexibility to invest for 1 month, 3 months, 6 months, or 1 year. However, there is no automatic renewal option.
This means that once the FD matures, the money will be credited to the customer’s foreign currency account.
If the customer wishes to reinvest, they will need to fill out the form and complete all necessary formalities again.
Minimum Deposit Requirement
To open an FD under this scheme, the minimum deposit amount is $5,000. After that, investments can be increased in multiples of $1,000.
There is no upper limit on the deposit amount. Since the scheme requires deposits in US dollars, the interest rate plays a key role in the returns.
The interest rate for this scheme is updated on the 1st of every month, so it may vary each month.
Early Withdrawal Option
While the FD duration cannot be changed once the money is deposited, HDFC Bank does allow withdrawal before maturity.
However, early withdrawal comes with a penalty, so customers should be aware of this before making the investment.
Interest Rates for Different Periods
The Diplomat FD Scheme offers different interest rates based on the deposit tenure. The rates are as follows:
1-month deposit: 2.20%
3-month deposit: 3.60%
6-month deposit: 4.20%
1-year deposit: 4.75%
The bank provides higher interest rates for longer-term deposits under this scheme.
In conclusion, the HDFC Bank Diplomat FD Scheme is a specialized fixed deposit option for embassy staff and diplomats, offering attractive returns in US dollars with flexible tenure options.
