HDFC Bank FD 2 Lakh Return: You will get great profits on FD of ₹ 2 lakh in HDFC Bank, your money will increase by this much in 1 to 10 years.

HDFC Bank, the country’s largest private bank, remains a preferred option for depositors looking for safe investments and assured returns. Fixed deposit (FD) schemes of banks are always suitable for investors who want regular and guaranteed returns while keeping their lump sum capital safe, away from the ups and downs of the stock market. If you are planning to invest a lump sum amount of Rs 2 lakh in fixed deposit in HDFC Bank, it is important to understand the complete financial analysis of how much your money will grow over different tenures ranging from 1 year to 10 years and how much total amount you will get on maturity. From HDFC Bank branches located in Hazratganj and Gomti Nagar in Lucknow, the capital of Uttar Pradesh, to crores of customers across the country, the bank is offering different interest rates to ordinary citizens and senior citizens.

The interest received on fixed deposits in HDFC Bank is compounded on the basis of ‘Quarterly Compounding’. This means that every three months the interest earned is added to the principal amount, thereby earning interest on the interest later on. The bank is offering annual interest ranging from 6.15% to 6.50% to general citizens for a period of 1 year to 10 years. At the same time, senior citizens aged 60 years or above are being given an additional interest premium of 0.50%, due to which the interest rates for them reach 6.65% to 7.00% per annum. The highest interest rates in the bank are available on special tenures ranging from 3 years to 4 years and less than 7 months.

If you deposit an amount of ₹2,00,000 under Reinvestment/Cumulative FD in HDFC Bank, the details of interest and estimated maturity amount in different tenures will be as follows:

It is clear from the financial data that if a common citizen deposits an amount of ₹2 lakh for 3 years, he gets a net interest profit of ₹42,674 at the rate of 6.50% and the total fund becomes more than ₹2.42 lakh. For senior citizens, this profit increases to ₹ 46,288 in 3 years. Whereas, on choosing a tenure of 5 years, general citizens get interest benefit of ₹ 74,705 and senior citizens get ₹ 81,591. If a 5 year FD is booked under ‘Tax Saving FD’, then additional benefit of tax deduction up to ₹ 1.5 lakh can be availed under Section 80C of the Income Tax Act. However, tax saving FDs have a mandatory lock-in of 5 years, which cannot be broken midway.

If you lock ₹2 lakh for long-term goals—like children’s marriage or higher education—for a maximum period of 10 years, the effect of compounding would earn an average citizen an interest of ₹1,68,269, taking the total maturity amount to ₹3,68,269. Whereas for senior citizens, the total return in 10 years at the rate of 6.65% reaches ₹ 3,86,857. This means that your savings almost double in 10 years, that too without any market risk.

Before booking FD, it is important to keep some important rules in mind. According to income tax rules, if the total interest received from FD in a financial year exceeds ₹ 40,000 for general citizens and ₹ 50,000 for senior citizens, then the bank deducts TDS at the rate of 10%. If the PAN card is not updated in the bank, the TDS rate becomes 20%. If your total income does not fall within the taxable limit, do not forget to submit Form 15G (Form 15H for senior citizens) to the bank on time to avoid TDS. Additionally, in case of emergency, if the FD is withdrawn prematurely (Premature Withdrawal), the bank charges a penalty of up to 1% on the applicable interest rate. If customers wish, instead of breaking the FD, they can also take an overdraft or loan up to 90% of the deposit amount, which helps in maintaining their investment and also avoids the immediate cash crisis.