SBI vs HDFC: A Comprehensive Comparison of Fixed Deposits
Last Updated : Jan. 28, 2023, 3:11 p.m.
You can invest in multiple ways. The most important thing to ensure before investing is knowing thoroughly about the financial establishment you would entrust. You should know whether they can provide you with the services and benefits you want. A well-known way to invest money is a fixed deposit. Discover how SBI fixed deposits differ from that of HDFC.
Characteristics and Perks
Here is a glance into the characteristics and perks of fixed deposits at SBI and HDFC:
SBI Fixed Deposit
The characteristics and perks of SBI Fixed Deposit are:
- The tenure of the SBI Fixed Deposit ranges from seven days to ten years.
- The minimum amount of money you must deposit to open an SBI Fixed Deposit is 100 INR. Nonetheless, the maximum amount needed to open a fixed deposit in the State Bank of India has no limits.
Senior Citizens can access 0.50% additional SBI Fixed Deposit interest rates. - The State Bank of India gives customers the advantage of a nomination facility that helps account holders to nominate family members to collect the amount after maturity.
- On deposit, you can access the auto-renewal facility.
- You can apply for loans against fixed deposits.
HDFC Fixed Deposit
The characteristics and features of HDFC Fixed Deposit are as follows:
- Anyone can apply for the HDFC Fixed Deposit scheme via the internet banking facility of HDFC from whichever part of the world you are in.
- If you withdraw the amount prematurely within a week of investing in HDFC Fixed Deposit, you will not receive any interest.
- According to your requirements, you can select the lock-in period.
- Senior citizens will get access to the best interest rates on the HDFC Fixed Deposit scheme.
- You can opt for any interest payout option that HDFC bank provides.
Eligibility Criteria
You will find subtle differences in the eligibility criteria of the banks:
SBI Fixed Deposit
The eligibility criteria for SBI Fixed Deposit are:
- Individuals willing to invest in SBI Fixed Deposit must be a citizen of India.
- They should be members of HUF, local establishments, a government employee, or anyone employed in the private sector.
HDFC Fixed Deposit
The eligibility criteria for HDFC Fixed Deposit are:
- Citizen of India
- Companies in collaboration with other companies
- Trusts
- Members of HUF
Documents Required
The following sections cover the key differences between the documents required:
SBI Fixed Deposit
The documents required for SBI Fixed Deposit are:
- Adhaar Card
- Driving License
- Passport
- Voter Identification Card
- Permanent Account Number Card
- National Rural Employment Guarantee Act
HDFC Fixed Deposit
The documents required for HDFC Fixed Deposit are:
- Address Proof
- Government Authenticated Identity
- Permanent Account Number
- In the case of exemption from Tax Deduction Service, fill up Form 15G or 15E
- A recent passport-size photograph
How to Open an SBI Fixed Deposit Account?
To open an SBI Fixed Deposit account, follow the steps below:
Online Process
- Go to the official website of the State Bank of India.
- Log in to your Internet banking account with the help of your login identification and password.
- On the official home page of SBI, first, tap on the deposit scheme option and then on the fixed deposit option.
- Select the option e-fixed deposit from the menu.
- Select the fixed deposit you plan to open and tap on proceed.
- Tap on the submit button to open your fixed deposit account.
Offline Process
To open an SBI Fixed Deposit account with the help of the offline process, visit the official branch of the State Bank of India near you with all the documents required for opening a fixed deposit account in the State Bank of India. When you visit the branch near you, a bank representative will help you open a fixed deposit account in the State Bank of India.
How to Open an HDFC Fixed Deposit Account?
You can open an HDFC Fixed Deposit account through offline and online methods. The steps for both online and offline method is given below:
Online Process
- Go to the official website of HDFC Bank.
- Log into your internet banking account.
- Select the Transact section
- Select the option Open Fixed Deposits
- Enter the basic information such as HDFC branch, fixed deposit tenure, account, nominee, etc.
- After entering the basic information, tap on the Continue button and then tap on proceed.
Offline Process
To open an HDFC Fixed Account, visit the HDFC branch near you. After you reach the branch, a representative of the bank will assist you in opening a fixed deposit account in the bank.
Interest Rates
Here below is information about the interest rates offered by the two banks:
SBI Fixed Deposit Interest Rates
The State Bank of India hiked interest rates in fixed deposits for terms of more than two years by ten to fifteen points. According to information on the official website of the State Bank of India, the interest rate of fixed deposits for two to three years was hiked by ten points to 5.20% and 15 points for three to five years to 5.45%. Ten points hike in the interest rate of fixed deposits for five to ten years to 5.50%. The improved interest rates apply to fixed deposits with a value lower than 2 Crore.
Tenors | Interest Rate (General) | Interest Rate (Senior Citizen) |
---|---|---|
7 days - 45 days | 3.00% | 3.50% |
46 days - 179 days | 4.50% | 5.00% |
180 days - 210 days | 5.25% | 5.75% |
211 days - less than 1 year | 5.75% | 6.25% |
1 year - less than 2 year | 6.75% | 7.25% |
2 years - less than 3 years | 6.75% | 7.25% |
3 years - less than 5 years | 6.25% | 6.75% |
5 years - 10 years | 6.25% | 7.25% |
HDFC Bank Fixed Deposit Interest Rates
According to the official website of HDFC bank, increased interest rates on fixed deposits are lower than two crores INR. It hiked the interest rates on one-year fixed deposits by ten points to 5% from 4.9% and the interest rate on three to five-year fixed deposits by five points to 5.45% from 5.40%. The bank also raised the interest rates of fixed deposits with a tenure of 2 years and one day.
Tenors | Interest Rate (General) | Interest Rate (Senior Citizen) |
---|---|---|
1 year - 1 year 11 months 29 days | 6.85% | 6.85% |
1 year 11 months 30 days - 2 years 11 months 30 days | 7.3% | 7.05% |
3 years - 4 years 11 months 30 days | 7.35% | 7.1% |
5 years - 9 years 11 months 28 days | 7.2% | 7.3% |
1 year - 1 year 11 months 29 days | 6.85% | 6.85% |
1 year 11 months 30 days - 2 years 11 months 30 days | 7.3% | 7.05% |
Conclusion
The comparative analysis of the SBI fixed deposit and HDFC fixed deposit above will help you finalize your partner for your next FD. Thinking wisely about your tenure and requirements before shortlisting a suitable bank is one of the smartest moves in today’s fast-paced competitive environment.