HDFC Bank has introduced a short- to mid-term fixed deposit that is catching attention for its competitive interest rate. The 21-month FD offers higher returns than standard short-term deposits, making it an attractive option for investors looking for safety and decent interest over a moderate period.
If you are planning your finances for the next two years or want to grow your savings without market risk, this FD plan deserves a closer look.
Key Features of HDFC 21-Month FD
The 21-month deposit comes with a fixed interest rate of 6.60% per annum for regular customers and 7.10% per annum for senior citizens. This allows investors to lock in a reliable return while keeping the investment period relatively short.
Other features include:
- Minimum deposit starts from ₹5,000.
- Option to receive interest monthly, quarterly, or at maturity.
- Cumulative and non-cumulative interest options.
- Safe and guaranteed returns insured under banking regulations.
This makes the 21-month FD suitable for investors who want moderate tenure and predictable income.
Earnings Example With 21-Month FD
Here’s an approximate estimate of returns based on different deposit amounts:
| Deposit Amount | Interest Rate | Approx. Interest for 21 Months |
|---|---|---|
| ₹1,00,000 | 6.60% | ₹11,500 |
| ₹5,00,000 | 6.60% | ₹57,500 |
| ₹10,00,000 | 6.60% | ₹1,15,000 |
For senior citizens, the interest earned will be slightly higher because of the additional 0.50% rate.
When the 21-Month FD Is a Good Option
This FD tenure is ideal if you:
- Need a fixed, short- to mid-term investment option.
- Want better returns than a savings account but cannot lock money for several years.
- Are planning for an expense in the next 1.5–2 years.
- Prefer safety and guaranteed returns over market-linked risks.
It strikes a balance between liquidity and interest income, making it a convenient option for conservative investors.
Common Mistakes to Avoid With Short-Term FDs
- Ignoring premature withdrawal penalties: Withdrawing before maturity reduces interest earnings.
- Overlooking compounding benefits: Opting for non-cumulative payouts can slightly reduce overall returns.
- Investing without planning liquidity: Only lock money that you won’t need during the tenure.
By keeping these points in mind, you can maximize the benefits of the 21-month FD.
Tips to Maximize Returns
- Choose cumulative interest for the highest total earnings.
- Book online to avoid delays and ensure immediate rate locking.
- Align your deposit duration exactly with 21 months to get the advertised rate.
- Senior citizens should verify that the extra 0.50% is applied correctly.
- Plan reinvestment before maturity to continue earning without a gap.
Conclusion
HDFC’s 21-month FD plan offers a safe, fixed-income option with attractive returns. With rates at 6.60% for regular investors and 7.10% for senior citizens, it provides a solid middle-ground investment for those seeking predictable income over a moderate term.
If you want a reliable, low-risk investment with decent interest and moderate lock-in, the 21-month HDFC FD is worth considering.
FAQs
What is the interest rate for the 21-month HDFC FD?
Regular customers get 6.60% per annum, and senior citizens get 7.10% per annum.
How much will I earn on ₹5 lakh for 21 months?
You can expect around ₹57,500 in interest for regular customers.
Can the FD be withdrawn before maturity?
Yes, but premature withdrawal may reduce interest or attract penalties.