HDFC Bank has launched a unique fixed deposit (FD) scheme called the Diplomat or Embassy Scheme.
This scheme is specially designed for diplomats, non-diplomatic embassy staff, and employees of foreign embassies in India.
Unlike regular FDs, this scheme allows customers to deposit money in US dollars instead of Indian rupees.
No Automatic Renewal
Customers can invest their money for 1 month, 3 months, 6 months, or 1 year under this scheme. However, there is no automatic renewal once the FD matures.
When the FD term ends, the money is transferred to the customer’s foreign currency account.
If they wish to reinvest, they must submit a new form and complete the necessary formalities again.
Minimum Deposit and Interest Rates
The minimum deposit amount is $5,000, and additional deposits can be made in multiples of $1,000.
There is no maximum limit on how much a customer can invest.
The interest rate changes every month, so customers should check the latest rates before investing.
Early Withdrawal and Interest Rates
Customers can withdraw their money before maturity, but a penalty will be applied. Also, once the investment is made, the FD duration cannot be changed.
Here are the interest rates for different deposit periods:
1-month FD – 2.20% interest
3-month FD – 3.60% interest
6-month FD – 4.20% interest
1-year FD – 4.75% interest
Longer deposit periods offer higher interest rates, making it a good option for those looking for better returns.
