HDFC Bank New Rule: FD Option Instead of AMB
In 2025, HDFC Bank introduced a new option for customers – instead of directly charging a penalty for not maintaining a minimum balance, customers can now avoid the penalty by opening a fixed deposit (FD) of a certain amount. This means you can either maintain a fixed AMB/AQB or lock the same amount in an FD – after this, there will be no penalty if the AMB falls below this limit, and you will also earn interest on the FD.
What has changed?
The bank has introduced these options based on the urban–rural branch category:
- Metro/Urban branches: AMB ₹25,000 or FD ₹1,00,000
- Semi-Urban: AMB ₹5,000 or FD ₹50,000
- Rural: AQB ₹2,500 or FD ₹25,000
If you open the corresponding FD, there will be no penalty even if the AMB/AQB is low (subject to other rules). Regular interest will accrue on the FD.
Reason for Switching
- Customer Convenience: Cash flow and digital payments make it difficult to maintain a large monthly balance. The FD option will simplify compliance.
- Saving Habit: By keeping idle funds in FDs, they will earn interest instead of sitting idle in the account.
- Financial Inclusion: Lower requirements make banking more accessible for semi-regular and rural customers.
New FD Option — What’s the Benefit?
- Double Benefit: No Penalty + Interest on FD.
- Discipline: Avoid frequent withdrawals; some funds will be locked for savings.
- Flexibility: The current account will continue to handle daily transactions, while the FD will provide separate income.
Example: A metro customer opens a ₹100,000 FD — no charge on AMB shortfall, and interest on the FD will continue to accrue.
What if the conditions are not met?
If neither the minimum balance is maintained nor the FD is opened, the bank may impose a penalty based on the branch category and shortfall. The amount of the penalty will depend on the bank’s charge list. The best way to avoid losses is to choose a suitable FD or maintain a regular balance.
Who should choose which option?
- Those who find it easier to maintain a stable high AMB throughout the month should maintain the AMB.
- For those with irregular cash flow or frequent withdrawals — FD options are preferable as they reduce penalties and earn interest.
- Small FDs are a simple and affordable option for salaried, small business, and rural customers.
Things to Know (Important)
- Carefully read the FD tenure, interest rate, and premature withdrawal rules — early withdrawals may result in lower interest.
- Ask about auto-sweep or liquidity options if partial withdrawals are required.
- Other charges (SMS, debit card, branch transactions) apply separately; check these as well.
- Keeping KYC and branch category (metro/semi/rural) correct is essential to ensure the correct rules apply.
Conclusion and Caution
This HDFC Bank 2025 option makes banking more flexible and profitable — maintaining a minimum balance or opening an FD of the same amount can avoid penalties and earn interest on the FD. This is a convenient and savings-oriented method for everyday customers.
Disclaimer
This is general information. Terms, interest rates, and fees may change over time. Please confirm with HDFC Bank’s official website or your nearest branch/customer care before making a decision.
