Should you invest in HDFC green deposits?

The special fixed deposits have a tenure ranging from 3 years to 10 years, and can give you 6.55% interest annually

Staff Writer   /   August 18, 2021

Housing Development Finance Corporation Limited (HDFC Ltd), India’s premier housing finance company, has launched ‘Green & Sustainable Deposits’. The company says its offering comes with an aim to safeguard the environment from climate change. These fixed deposits will be directed towards financing of Green and sustainable housing credit solutions and services. Find out more. 
Key features:
Eligibility: Individuals (Residents & NRIs)
Period of Deposits: 36 – 120 months
Interest Rates: Up to 6.55% p.a. 
Senior Citizens (60 Years+) will be eligible for an additional 0.25% p.a. on deposits up to Rs 2 Crore. 
Additional ROI of 0.10% p.a. will be applicable on these deposits up to Rs 50 lakh per calendar month per customer if placed/renewed through HDFC online platform.
Simply put, the interest rate on these deposits will be up to 6.55 percent, with a tenor ranging from 3 to 5 years. 
On deposits up to Rs 2 crore, citizens over the age of 60 would be liable for an additional 0.25 percent interest per annum compared to those below regular citizens i.e. below 60.
Rating of deposit
HDFC’s Deposits are rated AAA from both CRISIL and ICRA for the past 27 consecutive years.  
How to invest
HDFC deposits can be placed through the HDFC’s online deposit platform.
Company speak
Renu Sud Karnad, Managing Director – HDFC Ltd said, “Safeguarding the environment from climate change is the need of the hour. We at HDFC have enhanced our environment and social due diligence and are working towards expanding our footprint in financing more green homes. Our Green & Sustainable Deposits are aligned with UN’s Sustainable Development Goals and it will also empower our depositors to direct their investments to financial solutions that have a positive impact on the environment and the society at large.”
Comparison with other HDFC deposits
HDFC Bank on the other hand offers an interest rate ranging from 2.50% to 5.50% on regular term deposits of tenor ranging from 7 days to 10 years. The private lender offers an interest rate ranging from 3.00% to 6.25% to senior citizens across the same tenure and against deposits of less than Rs 2 crore. HDFC Bank also offers a special fixed deposit scheme to senior citizens for a limited period of time.
Why invest
HDFC Ltd is a stable business and provides consistent AAA rating offer comfort. 
Do note that the Union Cabinet has recently cleared an amendment that allows customers of failed or stressed banks which are placed under moratorium to get their deposits (upto Rs 5 lakh) back within 90 days of start of moratorium. They would be able to get the deposits up to Rs 5 lakh back under the deposit insurance scheme of the Deposit Insurance and Credit Guarantee Corporation (DICGC). 
However, deposits of NBFCs such as HDFC Ltd. are not currently covered under deposit insurance. 

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