HDFC twin merger: HDFC Ltd FD investors to get Rs 5-lakh insurance but old interest rate, premature withdrawal rule to continue
HDFC Bank, the largest private sector bank in the country, and Housing Development Finance Corporation (HDFC Ltd), a mortgage lender, came into effect on July 1, 2023. Following the merger, customers of HDFC Ltd. will be served by the HDFC Bank.
If you have a fixed deposit with HDFC Ltd, you are bound to witness certain changes post-merger. From the interest rate of your fixed deposits to the premature withdrawal rule to deposit insurance — ET Online explains in detail what will change for FD customers after the HDFC Ltd-HDFC Bank merger.Will your HDFC Ltd FD account number change post-merger? First things first. Your FD account number with HDFC Ltd will remain the same after the HDFC Ltd.-HDFC Bank merger.
Further, it will be your reference point for all your future communications with HDFC Bank, the lender said.How will the HDFC Ltd. -HDFC Bank merger impact your FD interest rate, pay-outs, maturity instructions? There will be no change in the terms of your fixed deposit with HDFC Ltd. The interest rates, interest computation methodology, tenure, maturity instructions, and pay-outs of your fixed deposit will remain the same until the maturity/renewal of your FD, the HDFC Bank said in its merger FAQs available on its website.
Your existing deposit receipt issued by HDFC Ltd. will continue to be valid till the maturity of the FD.Now you will get Rs 5-lakh deposit insurance cover for your HDFC Ltd. FDs The deposits in scheduled banks such as HDFC Bank are insured up to Rs 5 lakh under the deposit insurance scheme.
The insurance amount includes the principal and interest amounts. This insurance cover is offered by the Deposit Insurance Credit Guarantee Corporation (DICGC), a wholly-owned subsidiary of the RBI. Earlier,
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