Important : "As per the Terms & Conditions of Fixed Deposit Accounts of the bank, the penalty on premature

closure of Fixed Deposits including sweep-in and partial closures has been fixed by the Bank at the rate of 1%." This will be applicable with effect from 24th January 2011. If you believe in long-term investments and wish to earn higher interests on your savings, NOW is the time to invest your money in our Fixed Deposit. Get upto 9.25% on HDFC Bank Fixed Deposit with an additional 0.50% for Senior Citizens. Flexibility, Security and High Returns all bundled into one offering. Check out the rates and book an FD TODAY!! NetBanking Users can login and book their Fixed Deposit online immediately. Features & Benefits Potential to earn compound interest by reinvesting the principal amount along with the interest earned during the period. Flexibility in altering period of deposit of renewal deposit, maturity and payment instructions, principal amount and rollover mode before maturity of the rollover deposit. Higher rate of interest on Fixed Deposits for Senior Citizens.

Eligibility The following can apply for a Regular Fixed Deposit Resident Individuals Hindu Undivided Families Sole Proprietorship Firms Partnership firms Limited companies Trust Accounts Effective 01st April 2010, PAN is mandatory to book Fixed Deposits if the total Fixed Deposit holding per customer id per branch exceeds 50,000/An initial deposit of Rs. 5,000/- is required to open a Fixed Deposit

Interest Rates

When you open a Fixed deposit with HDFC Bank Your interest is calculated on a quarterly basis for deposits of 6 months and above For those deposits with a tenure of below 6 months, your interest is calculated at maturity as Simple Interest. The period of Fixed Deposit is calculated in number of days. Interest for re-investment is calculated every quarter, and the Principal is increased to include interest earned during the previous quarter. Tax at source is deducted as per the Income Tax regulations prevalent from time to time. Note: "As per the Terms & Conditions of Fixed Deposit Accounts of the bank, the penalty on premature closure of Fixed Deposits including sweep-in and partial closures has been fixed by the Bank at the rate of 1%." This will be applicable with effect from 24th January 2011. Interest rates are subject to change from time to time. Applicable interest rates will be given as on the date / time of receipt of the funds by the bank. When booking FD through NetBanking please note the actual interest rate being applied on the "Confirm" screen. This screen appears before you confirm your request for opening a new FD. In order to see the latest information, we request you to clear your browsers cache to see the updated interest rates.

Important : As per section 206AA introduced by Finance (No. 2) Act, 2009 wef 01.04.2010, every person who receives income on which TDS is deductible shall furnish his PAN, failing which TDS shall be deducted at the rate of 20%(as against 10% which is existing TDS rate) in case of Domestic deposits and 30.90% in case of NRO deposits Please further Note that in the absence of PAN, as per CBDT circular no:03/11, TDS certificate will not be issued, form 15G/H and other exemption certificates will be invalid even if submitted and penal TDS will be applicable. Please visit nearest HDFC Bank branch to submit or confirm updation of your PAN with the bank. Tax Deductions For Re-investment Fixed Deposits The following will be applicable for a Regular Fixed Deposit TDS will be deducted when interest payable or reinvested per customer, per branch, exceeds Rs 10,000 in a financial year. A consolidated Annual TDS Certificate will be mailed to you after the end of the financial year, including details of all TDS deductions during the year.

W.e.f Aug 09, applicable TDS rates are: Tax Rate Resident Individuals & HUF Corporate Entity NRO Firms Co-operative Societies & Local Authority 10% 10% 30% 10% 10% Surcharge ---------------Education Cess ------3% ------TOTAL 10% 10% 30.90% 10% 10%

If you are exempt from paying tax, you need to present Form 15H when you open a Fixed Deposit and subsequently at the beginning of the following financial year. TDS will be deducted on the basis of interest accrued on the Fixed Deposit(s) also even if the interest has not been credited/re-invested. Please check the FAQ for more information on TDS. In case of renewed deposits,the new deposit amount consist of the original amount plus interest less Tax Deduced at Source(if any),less compounding effect on TDS. At times, it may lead to recovery of TDS from the principal amount of the deposit. e.g In case of multiple deposits with the bank, if the threshold of 10,000/- is breached by one of the FD while compounding the interest in the FD, TDS is amount is apllicable on entire interest earned in that cust id, this FD interest will definitly would not be sufficient to recover the entire amount hence the remaining amount will be receoverd from the same FD principal whoes interest compounding has breached the threshold.

FAQs If you have any queries that are not answered here, please call us or write to us. When do I become liable for TDS? When is TDS deducted? Can TDS be recovered from my principal of the FD in any cse ? Can the maturity amount of the deposit reduce due to TDS ? Does any change or enhancement in my deposit portfolio affect TDS liability? At what rate is TDS deducted? How and when can I apply for exemption on TDS? When does the Bank issue a TDS Certificate?

Can the account be opened in a joint account with a non-senior citizen? What documentation is required to open a senior citizen FD? I am an existing customer, do I need to apply for a separate Customer ID to avail this facility? Will I have to provide proof of age for all the subsequent Fixed Deposits? Can I open a Fixed Deposit through Netbanking if my PAN details are not updated with the bank? What is the NEW policy with regards to PAN to book fixed deposit with our bank? What are the implications of booking an FD without PAN?

When do I become liable for TDS? If the aggregate interest that you are likely to earn for all your deposits held in a branch in a customer id is greater than Rs .10,000/- in a financial year,you become Liable fo TDS.Note: Tax liability for TDS purpose is determined at branch level. Deposits held by minors are also subject to TDS. The credit for the TDS can be claimed by the person in whose hands the minor's income is included. Note: Tax liability for TDS purpose is determined at branch level. Deposits held by minors are also subject to TDS. The credit for the TDS can be claimed by the person in whose hands the minor's income is included.

When is TDS deducted? TDS is deducted every time the Bank pays/re-invests interest during the Financial year.In addition TDS is also deucted on interest accrued(but nt yet paid) at the end of financial year viz. 31st March.

Can TDS be recovered from my principal of the FD in any cse ? Yes, cases where interest amount is not sufficient to recover TDS, the same is recovered from the principal of the deposit.

Can the maturity amount of the deposit reduce due to TDS ? Yes, in case of reinvestment deposits ,the interest reinvested is post TDS recovery & hence the

maturity amount for re-investment deposits would very to the extent of tax and compounding effect on tax for the period subsequent of deduction till maturity.

Does any change or enhancement in my deposit portfolio affect TDS liability? Yes. If the change or enhancement in your deposit portfolio earns a cumulative interest along with that of the earlier portfolio greater than Rs. 10,000/- you will be liable for TDS on your current portfolio. Note: If interest on the current portfolio is not sufficient to cover TDS, it will be recovered from the principal.

At what rate is TDS deducted? TDS is deducted at the following rates for the following category of account holders: W.e.f Aug 09, applicable TDS rates are: Tax Rate Resident Individuals & HUF Corporate Entity NRO Firms Co-operative Societies & Local Authority 10% 10% 30% 10% 10% Surcharge ---------------Education Cess ------3% ------TOTAL 10% 10% 30.90% 10% 10%

Important : As per section 206AA introduced by Finance (No. 2) Act, 2009 w.e.f 01.04.2010, every person who receives income on which TDS is deductible shall furnish his PANo, failing which TDS shall be deducted at rate of 20% in case individuals and at the rate of 30% in case of non-individuals for Domestic deposits and 30.90% in case of NRO deposits

How and when can I apply for exemption on TDS? If you believe that your total interest income for the year will not fall within overall taxable limits, you should inform the bank not to deduct TDS on deposits. You can do this by submitting

a form as per the provisions of the Income Tax Act. The forms required for different categories have been listed below: Category of Account Individual Companies Association of Companies Trusts Form Required 15H 15AA 15AA 15AA

Note: y You have to obtain 15AA Form from the Assessing Officer of Income Tax department. y Even if the customer submits the 15H/15AA Form, the tax which has already been deducted by way of TDS during the year prior to submission of 15H Form will not be refunded by the bank. However Certificates will be issued to the customers which can be used while filing his/her tax return. y 15H/15AA Forms are valid only for the particular financial year in which they are issued. y A fresh Form 15G/H needs to be furnished for each deposit that is placed with the Bank within the first week of the financial year.

When does the Bank issue a TDS Certificate? TDS Certificate in Form 16A starting from financial year 2010-11, for TDS deducted during a calender quarter will be issued in the next month of the respective quarter.

Can the account be opened in a joint account with a non-senior citizen? Yes, provided the first account holder is a senior citizen.

What documentation is required to open a senior citizen FD? While opening the account, the customer needs to provide proof of age establishing that he/she is a Senior Citizen. To accomplish this, either of the following can be submitted: Secondary School Leaving Certificate (10th Class) LIC Policy Voters Identity Card

Pension Payment Order Birth Certificate issued by the competent authority Passport Defence ID Card / Govt ID Card (Provided they have the cardholder's photo, signature and date of birth) PSU Issued ID Cards Senior Citizen Cards issued by Indian Airlines / Indian Railways PAN Card

I am an existing customer, do I need to apply for a separate Customer ID to avail this facility? There is no need to create a separate Customer ID to avail of this product. For new Fixed Deposits, you only have to provide proof of age .In case proof of age is not submitted, the interest earned will be the same as for the regular FD.

Will I have to provide proof of age for all the subsequent Fixed Deposits? All subsequent Fixed Deposit applications need to be accompanied by proof of age. The only exception to this rule is where a customer already has a live Senior Citizen Fixed Deposit existing at the time of placing the next Fixed Deposit. The Fixed Deposit number needs to be mentioned on the Form. In such cases, it will be assumed that proof of age already exists with the Bank.

Can I open a Fixed Deposit through Netbanking if my PAN details are not updated with the bank? Through NetBanking, FD's can be booked by any applicant subject to PAN is updated with the Bank for the Primary applicant in which the Fixed Deposit is getting booked

What is the NEW policy with regards to PAN to book fixed deposit with our bank?
y

Where total FD value under per Cust ID per branch is <=50,000/- (including the new FD being booked) ---- NO PAN & NO FORM 60.

Where total FD value under per Cust ID per branch is >50,000/ (including the new FD being booked) ---- PAN REQUIRED MANDATORILY

What are the implications of booking an FD without PAN? In the absence of PAN, following are the implications for customers:
y y y y

TDS will be recovered at 20%(as against 10%) NO TDS credit from the Income Tax department NO TDS certificate will be issued (As per CBDT circular no:03/11) Form 15G/H and other exemption certificates will be invalid and penal TDS will apply