By June 2023, there will be a merger of HDFC and HDFC Bank. The combined company will be called HDFC Bank. Customers of HDFC, whether they are depositors or borrowers, may notice certain changes following the merger. Here is a list of changes that would affect HDFC clients following the merger, ranging from the interest rate on fixed deposits to the policies on early withdrawal.

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The largest private sector lender in the nation, HDFC Bank, will soon combine with HDFC, the largest home financing organization in India. By June, the merger should be finished. Customers of HDFC, whether they are depositors or borrowers, may notice certain changes following the merger.

According to HDFC’s website, there are almost 21 lakh deposit accounts. Let’s find out how the merger will affect these depositors.

By June 2023, HDFC and HDFC Bank will combine. The combined company will be called HDFC Bank. Customers of HDFC, whether they are depositors or borrowers, may notice certain changes following the merger. Here is a list of changes that would affect HDFC clients following the merger, ranging from the interest rate on fixed deposits to the policies on early withdrawal.

Fixed deposit (FD) interest rates at HDFC Bank are often lower than those at HDFC, a home financing firm. For instance, as of May 8, 2023, if you deposit less than Rs 2 crore in a fixed deposit with HDFC for a 66-month term, you will get an annual interest rate of 7.45%. For a similar term, HDFC Bank is giving an interest rate of 7%.

Interest rates for retail deposits at the house financing firm range from 6.95 to 8%. In HDFC, retail FDs have terms ranging from 22 months to 120 months. Interest rates for retail fixed deposits at HDFC Bank range from 3% to

The Merger of HDFC Bank and HDFC: What Does it Mean for older citizens?

The home financing organization grants elderly citizens an additional 0.25 percent interest rate on deposits up to Rs 2 lakh. However, HDFC Bank grants older persons who make fixed deposits an additional 0.5% interest rate. As you can see, the interest rates given by HDFC and HDFC Bank are different.

How HDFC customers’ interest compounding will alter

The mentioned interest rate for cumulative retail fixed deposits with HDFC is compounded once a year. On the other hand, cumulative fixed deposits at HDFC Bank earn income on a quarterly compounding basis. Therefore, it would be wiser to choose the lower interest rate when comparing the two.

How HDFC customers’ interest compounding will alter

The mentioned interest rate for cumulative retail fixed deposits with HDFC is compounded once a year. On the other hand, cumulative fixed deposits at HDFC Bank earn income on a quarterly compounding basis. It is therefore preferable to compare the yearly yield of the bank’s fixed-rate deposit with the cumulative annual interest rate of the home financing company’s FD if you must compare the two interest rates. For instance, the maximum FD interest rate offered by HDFC Bank for terms of at least 18 months is 7%. However, it will result in an annual return of 7.19% when compounded quarterly throughout the year. In the meanwhile, the mortgage lender

The Merger of HDFC Bank and HDFC: Information for Depositors

The combined business, which will be called HDFC Bank, is anticipated to provide the housing finance company’s depositors the choice of withdrawing their funds or renewing their deposits with the private sector bank at the interest rate being given by it. Renewal interest rates on FDs with HDFC Bank are anticipated to be somewhat lower than they were with HDFC. According to Dev Ashish, founder of StableInvestor and a SEBI-registered investment advisor (RIA), “Those who do not renew, the amount on maturity will automatically get deposited in the savings account in HDFC.”

Fixed deposit (FD) interest rates at HDFC Bank are often lower than those at HDFC, a home financing firm. For instance, as of May 8, 2023, if you deposit less than Rs 2 crore in a fixed deposit with HDFC for a 66-month term, you will get an annual interest rate of 7.45%. For a similar term, HDFC Bank is giving an interest rate of 7%.

Interest rates for retail deposits at the house financing firm range from 6.95 to 8%. In HDFC, retail FDs have terms ranging from 22 months to 120 months. Interest rates for retail fixed deposits at HDFC Bank range from 3% to