HDFC Bank FD Scheme: HDFC Bank Launches Diplomat FD Scheme

HDFC Bank has introduced a brand-new fixed deposit product tailored for a specific clientele—the HDFC Bank Diplomat FD Scheme. This unique deposit scheme is crafted exclusively for diplomats, non-diplomatic staff, and diplomatic missions, offering them a reliable, high-yield investment option in the form of a Foreign Currency Fixed Deposit. If you’re wondering what this scheme entails, its benefits, eligibility criteria, and how it stands out, you’re in the right place.

In this detailed guide, we’ll break down HDFC Bank Diplomat FD Scheme in an easy-to-understand manner. Whether you’re an investor, financial professional, or someone simply curious about fixed deposits, this article covers everything you need to know.

HDFC Bank Diplomat FD Scheme

Feature	Details
Scheme Name	HDFC Bank Diplomat FD Scheme
Eligibility	Diplomats, Non-Diplomatic Staff, Diplomatic Missions
Currency	USD (United States Dollars)
Minimum Deposit Amount	USD 5,000 (in multiples of USD 1,000 thereafter)
Tenure Options	1 Month, 3 Months, 6 Months, 1 Year
Interest Rates (as of March 2025)	1 Month: 2.20%, 3 Months: 3.60%, 6 Months: 4.20%, 1 Year: 4.75%
Premature Withdrawal	Allowed with penalty of 0.50% on applicable interest rate
Renewal Policy	No automatic renewal; new request required post-maturity

The HDFC Bank Diplomat FD Scheme stands out as a robust, stable, and tailored fixed deposit option for diplomatic missions and their staff in India. Offering attractive USD-based returns, flexible tenures, and a strong safety net, it’s an ideal financial product for diplomats seeking predictable growth without currency risk.

What is HDFC Bank Diplomat FD Scheme?

The HDFC Bank Diplomat FD Scheme is a specialized fixed deposit offering designed specifically for diplomats and diplomatic missions operating in India. Unlike traditional FDs offered in Indian Rupees (INR), this scheme is available exclusively in United States Dollars (USD). It offers a fixed interest return over a predetermined period and is ideal for those seeking safety, stability, and predictable returns in foreign currency.

Who is Eligible?

The scheme is not open to the general public. Only the following categories can invest:

Diplomats posted in India
Non-diplomatic staff associated with diplomatic missions
Recognized Diplomatic Missions and Consulates in India

Important: The depositor needs to provide valid documentation verifying their diplomatic status as per RBI and HDFC Bank norms.

Interest Rates and Tenure Options

One of the most attractive features of this scheme is its competitive interest rates, which are updated monthly based on prevailing market conditions. As of March 18, 2025, here’s how the rates look:

Tenure	Interest Rate (USD)
1 Month	2.20%
3 Months	3.60%
6 Months	4.20%
1 Year	4.75%

These rates are quite appealing for foreign investors, especially when compared to domestic FD rates, due to currency strength and global economic conditions.

Minimum Deposit Requirement

To start investing in the Diplomat FD Scheme, a minimum of USD 5,000 is required. Subsequent additions can be made in multiples of USD 1,000.

Example:

Initial Deposit: USD 5,000
Additional Deposit: USD 1,000, USD 2,000, etc.

Premature Withdrawal Policy

While the scheme provides flexibility, premature withdrawal comes with certain conditions:

Allowed anytime during the FD tenure.
Penalty: 0.50% is deducted from the applicable interest rate.
If, after penalty adjustment, the effective interest rate turns negative, no interest will be paid.

Illustration: If you invest in a 6-month FD at 4.20% but withdraw after 3 months when the 3-month rate is 3.60%, your payout rate will be reduced by 0.50% (i.e., 3.10%).

No Automatic Renewal: Why It Matters

Unlike many domestic FD schemes, the HDFC Bank Diplomat FD does not auto-renew upon maturity. Instead, the maturity proceeds are credited back to the linked foreign currency account.

To reinvest:

Fill out a fresh FD request form.
Submit necessary documentation and declarations again.
Provide updated nomination details.

This ensures regulatory compliance and safeguards the depositor’s rights.

Maturity on Non-Business Days

Another practical aspect of this scheme is its handling of maturities falling on weekends or bank holidays:

Interest continues to accrue at the agreed rate till the next working day.
Principal plus accrued interest is paid on the next business day.

Why Choose the Diplomat FD Scheme? Pros and Cons

Pros:

Advantages	Details
Stable Returns	Fixed interest ensures predictable earnings.
Foreign Currency Safety	No exposure to INR currency fluctuations.
Flexible Tenure	Options ranging from 1 month to 1 year.
Premature Withdrawal Facility	Accessible liquidity despite a penalty.
Tailored for Diplomatic Missions	Specifically designed product ensuring regulatory ease.

Cons:

Disadvantages	Details
Limited Eligibility	Available only to diplomats and diplomatic staff.
No Automatic Renewal	Manual reinvestment required after maturity.
Penalty on Early Withdrawal	0.50% reduction in applicable interest rate.
USD-Only Option	Not suitable for those preferring INR or other currency deposits.

How to Open an HDFC Bank Diplomat FD Account

Here’s a step-by-step guide:

Visit HDFC Bank Branch: Specifically one that deals with Foreign Currency Deposits and Diplomatic Accounts.
Provide Required Documents:
- Passport copy
- Diplomatic ID proof
- Letter from the Embassy/Consulate
- KYC documents as per RBI guidelines
Select Tenure and Deposit Amount: Choose your preferred duration (1 month, 3 months, 6 months, 1 year) and deposit in multiples of USD 1,000 (minimum USD 5,000).
Submit FD Request Form: Complete with nomination details and declarations.
Fund the Deposit: Amount to be debited from your HDFC foreign currency account.
Receive Confirmation: FD Receipt and maturity details issued by the bank.