HDFC Bank has introduced a special fixed deposit (FD) scheme called the Diplomat or Embassy Scheme.
This scheme is designed specifically for a select group of customers, including diplomats, non-diplomatic embassy staff, and employees of foreign embassies in India.
Unlike regular FDs, this scheme allows customers to deposit money in US dollars.
No Automatic Renewal
Under this scheme, customers can invest their money for 1 month, 3 months, 6 months, or 1 year. However, there is no automatic renewal option.
This means that once the FD matures, the funds will be transferred to the customer’s foreign currency account. If they wish to reinvest, they must fill out a new form and complete the required formalities again.
Minimum Deposit and Interest Rate
The minimum deposit amount for the Diplomat FD Scheme is $5,000, and additional investments can be made in multiples of $1,000. There is no upper limit on how much a customer can deposit.
Since the deposit is in US dollars, the interest rate is updated every month, meaning it can change over time. Customers should check the latest rates before investing.
Early Withdrawal and Interest Rates
Customers can withdraw their money before maturity, but they will have to pay a penalty for doing so. Also, the FD duration cannot be changed once the investment is made.
The scheme offers different interest rates depending on the deposit period:
1-month FD – 2.20% interest
3-month FD – 3.60% interest
6-month FD – 4.20% interest
1-year FD – 4.75% interest
Longer deposit periods offer higher interest rates, making it beneficial for those looking for better returns.
