HDFC Bank: All you need to know about the impact of merger with HDFC on FD investors

Mortgage major HDFC Ltd and largest private bank of India HDFC Bank have effectively merged their assets on July 1 and have created a combined entity with a market capitalisation of more than Rs 18 lakh crore.  

The new combined entity will include key subsidiaries of HDFC Bank, including HDFC Securities Ltd., HDB Financial Services Ltd., HDFC Asset Management Co. Ltd., HDFC ERGO General Insurance Co. Ltd., HDFC Capital Advisors Ltd., and HDFC Life Insurance Co. Ltd. The new entity, the company claims, will benefit shareholders, home loan borrowers, bank customers at a time of steady growth for the Indian economy.  

HDFC Bank has released a new set of FAQs related to fixed deposit investment and the merger’s impact on FD investors. For terms ranging from seven days to ten years, HDFC Bank offers interest rates for regular residents between 3 per cent and 7.25 per cent. 

HDFC Bank offers interest rates between 3.5 per cent and 7.75 per cent for tenure ranging from 7 days to 10 years. These rates are applicable from May 29, 2023.

Existing FD holders

1. What will be my Deposit Account Number and terms of the Fixed Deposit (FD) Booked with HDFC Limited?

Your FD Account Number continues to be the same and will remain the reference point for all your future communications with HDFC Bank

The terms of your FD along with interest rates, interest computation methodology, tenure, maturity instructions and pay-outs will remain the same until maturity/renewal of your FD

Your existing Deposit Receipt issued by HDFC Limited will continue to be valid till the maturity of the FD.

2. Will my FD with HDFC Limited be covered by guarantee from DICGC?

Your existing HDFC Limited FD will also be covered by guarantee from DICGC, within an overall maximum limit of Rs 5 lakh (Principle & Interest) post-merger with HDFC Bank.

3. Can I use HDFC Bank Net Banking to service my existing deposits with HDFC Limited?

FDs held with HDFC Limited will continue to be shown and serviced through Customer Self Service Portal, and will not be available on HDFC Bank Net Banking/Mobile Banking.

New deposits booked through Customer Portal will also continue to be serviced through it.

4. I am an existing customer of HDFC Bank, will my deposit with HDFC Limited be visible in my current HDFC Bank Net Banking or Mobile Banking?

If you are an existing customer of HDFC Bank with Net Banking or Mobile Banking access:

Your HDFC Limited deposit booked before June 30 2023 will be visible in HDFC Limited Customer Portal only.

HDFC Bank Fixed Deposits will be visible in HDFC Bank Net Banking & Mobile Banking
Deposit booked through Customer Portal after June 30, 2023 will be visible in both HDFC Customer Portal & HDFC Bank Net Banking & Mobile Banking.

5. Will I have access to HDFC Limited Customer Self Service Portal (Customer Portal) that I have been using prior to merger?

You will continue to have access to HDFC Limited Customer Portal, as you could before the merger.

6. Will HDFC Limited Deposit Offices continue to service my deposits?

Yes, you will continue to be serviced by your existing Deposit Offices as it was before the merger. Moreover, you can reach out to any of the over 7,500 branches of HDFC Bank.

7. Will HDFC Limited Deposit Agents continue to service my deposits?

> The Bank is committed to continue the arrangement with your associated Agent and they will be able to offer you services related to FDs

> In addition, the Agents will now be able to offer you other banking products, like Savings Account, Current Accounts, Credit cards and an array of Loan products.  

New Booking/Renewal/Withdrawal of Fixed Deposits

 

8. How will renewal of Fixed Deposits happen post the merger?

1. If the renewal date falls beyond the effective date of merger, renewal of FD will happen as per Bank’s terms and the Bank’s prevailing rates of interest at the time of renewal will apply. To know more of HDFC Bank’s current interest rates click here.

2. Individual customers can change the maturity instructions (renewal to repayment or vice versa) on FD with HDFC Limited through Customer Portal or by visiting existing Deposit offices of HDFC Limited or any other HDFC Bank branches

3. Non-Individual customers can change the Maturity Instructions (renewal to repayment or vice versa) on Fixed Deposit with HDFC Limited by submitting request at existing branch offices of HDFC or any HDFC Bank Branches.

9. How do I place new Deposits with HDFC Bank?

Individuals can book deposit with HDFC Bank through the following channels

I HDFC Limited Customer Portal or through KP App

ii. HDFC Bank Branches including HDFC Deposit Offices

iii. HDFC Bank Net Banking – in case they have an account with HDFC Bank

iv. Any other digital platform of HDFC bank.

You may reach out to Deposit Agent associated with your deposits or your assigned Relationship Manager with HDFC Bank

Non-individuals (Entities & Trusts): Physical Application at HDFC Bank branches, including HDFC Deposit Offices. You may reach out to Deposit Agent associated with your deposits or your assigned Relationship Manager with HDFC Bank

NRE/ FCNR Deposits: You can open New NRE/ FCNR Term deposit with HDFC Bank on Bank’s T&C. In order to open NRE/FCNR deposits online, you need to open a new NRE Savings/Current account. In case you already hold NRE Savings/Current account with HDFC Bank then you may login to Net Banking for placing a request for NRE/FCNR Term deposit opening.

10. I wish to withdraw my Deposit before the date of Maturity (Premature withdrawal)

Pre-Mature withdrawal of FD: Premature liquidation of erstwhile HDFC Limited deposit will be done as per premature withdrawal terms & conditions applicable on HDFC Limited deposit. You can continue to do it through Branches, Agents or Customer Portal like before. 

11. For Recurring Deposits

1. Recurring Deposits : Your existing recurring deposit will continue and monthly instalment will be debited from the linked account as updated against the RD as per the mandate submitted.

2. New Recurring Deposit with HDFC Bank : To open new RD, we request you to open a Savings Account with HDFC Bank through which you can book an RD.

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