The impending merger between HDFC, one of India's largest housing finance companies, and HDFC Bank is set to bring significant changes for customers, borrowers, and depositors. The completion of the merger is expected to take place by June, and according to HDFC's website, the merger will impact its 21 lakh deposit accounts.
For those who have invested in HDFC, it is essential to understand what changes they can expect after the merger. One notable difference is the interest rates offered by both companies. HDFC currently provides higher interest rates on fixed deposits (FDs) as compared to HDFC Bank. Suppose you have invested less than Rs 2 crore in HDFC for a tenure of 66 months. In that case, you will receive 7.45 per cent interest annually, while HDFC Bank provides only 7 per cent interest on the same tenure.
The interest rates offered by HDFC for retail depositors range from 6.95 per cent to 8 per cent for tenures between 22 months to 120 months, while HDFC Bank's interest rates range from 3 per cent to 7.5 per cent for the same tenure. For senior citizens, HDFC offers 0.25 per cent more interest on deposits up to Rs 2 lakh, while HDFC Bank provides 0.50 per cent more interest.
After the merger, individuals who have opted for renewal will have their FDs updated as per HDFC Bank's rules. For those who have not opted for renewal, there will be no change. Moreover, premature withdrawal rules will also be updated, and the insurance policies for fixed deposits may also be changed according to HDFC Bank's regulations.
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