1. What is HDFC Overdraft Against FD?

HDFC Bank offers overdraft facility against fixed deposits where customers can avail up to 90% of their FD value as an overdraft. This allows you to access funds without breaking your fixed deposit and losing interest.

2. How Does the Calculator Work?

The calculator uses the simple formula:

Where:

• \( FD\ Amount \) — The value of your fixed deposit in INR
• \( 0.9 \) — The 90% overdraft limit factor

Explanation: HDFC typically allows overdraft facilities up to 90% of your FD value, providing immediate liquidity while your FD continues to earn interest.

3. Benefits of Overdraft Against FD

Details: This facility helps you meet emergency fund requirements without premature withdrawal of fixed deposits, thus preserving your interest earnings while providing access to credit.

4. Using the Calculator

Tips: Enter your fixed deposit amount in INR. The calculator will instantly show you the maximum overdraft limit you can avail against your FD with HDFC Bank.

5. Frequently Asked Questions (FAQ)

Q1: What is the interest rate on overdraft against FD?
A: The interest rate is typically 1-2% above the FD rate, making it cheaper than personal loans.

Q2: Is there any processing fee for this facility?
A: HDFC may charge a nominal processing fee, usually a percentage of the overdraft limit or a fixed amount.

Q3: Can I avail overdraft against joint FD?
A: Yes, but all account holders need to consent and become joint borrowers for the overdraft facility.

Q4: How quickly can I get the overdraft facility?
A: Since the FD serves as security, the process is usually faster than unsecured loans, often within 24-48 hours.

Q5: Can I prepay the overdraft without penalties?
A: Most banks including HDFC allow prepayment of overdraft without any penalties.