What is My Passion Fund by HDFC Bank?
17 January, 2025
Synopsis
- The My Passion Fund is a flexible Recurring Deposit plan that you can open a My Passion Fund to save for a specific goal.
You can top up over and above the monthly instalment, as per the fund availability and earn interest on the additional amount.
- Understand the special benefits of this fund and read the steps for starting 'My Passion Fund’ of your own.
Saving money may feel challenging amidst numerous expenses. However, when you have a clear goal in mind, saving becomes attainable. With HDFC Bank My Passion Fund, you can save systematically to achieve your goals. This fund allows you to set a target amount and provides the flexibility to top-up your monthly contributions. Keep reading on to know more about My Passion Fund.
What is HDFC Bank My Passion Fund?
HDFC Bank’s My Passion Fund is a Flexi-Recurring Deposit (RD) that helps you save for specific goals. Additionally, unlike regular RDs, My Passion Fund allows you to contribute more than the standard monthly instalment and you can earn interest on the additional amount.
You can open a My Passion Fund via HDFC Bank NetBanking. You can start by setting a specific target amount that you need to achieve your goal. Based on the tenure and chosen target, the bank will calculate the monthly instalment amount to reach your goal.
Benefits of My Passion Fund
Here are reasons why you may want to consider a My Passion Fund.
Goal-Based Savings
With My Passion Fund, you can name your deposit after the passion you’re saving for, whether it’s a dream vacation, a gadget upgrade or a new hobby.
Attractive Interest Rates
The interest rates for HDFC Bank My Passion Fund are equivalent to regular Fixed Deposits. Senior citizens can enjoy an additional benefit of 0.50% on the applicable rates.
Option to Top Up
You can top up your deposit up to three times a month. The minimum top-up value is ₹1,000, with the maximum being twice the monthly instalment amount. You can top up the monthly instalment via NetBanking.
No Penalty for Withdrawal Before Maturity
You can withdraw your Recurring Deposit before maturity in case of an emergency without paying premature withdrawal penalties.
Special Rates Applicable
The exclusive special edition FD interest rates of 7.35% for a 35-month tenure and 7.40% for a 55-month tenure are applicable to My Passion Fund.
Flexible Tenure
You can choose a savings tenure that suits your financial plans, from as short as 6 months thereafter in multiples of 1 month each up to as long as 10 years.
No Standing Instruction (SI) Failure Charges
If there’s insufficient balance for a scheduled instalment, you won’t face a failure charge. It will get deducted in the subsequent month along with that month’s monthly instalment if there are sufficient funds in your account. You can also top up additional amount once funds are available.
Affordable Investment Options
Start small with investments as low as ₹1,000 and add in multiples of ₹100, up to a maximum of ₹14,99,900 per month.
Interest Paid on Every Contribution
Enjoy the benefit of earning interest from the date each instalment or top-up is deposited, ensuring your money starts working for you immediately.
How to Start a My Passion Fund?
You can start a My Passion Fund immediately via NetBanking. Follow these steps:
After logging into the NetBanking portal, select ‘Save’ in the top tab.
Select ‘My Passion Fund.
Select the passion you’re saving for, whether it is a new car, bike, celebrations, child education, electronics, home renovation, wedding, vacations, retirement planning or others. You can create a custom plan as well.
Select the account for debit.
Enter the targeted Passion Fund amount. This will be the amount you wish to achieve once your tenure ends.
Select the preferred tenure and click on ‘Calculate’. In the next step, you can check how much money you need to contribute per month and the maximum top-up that will be allowed.
You can recalculate the amounts to find a plan that works for you.
Review the details and complete the fund opening process.
Save Smartly Towards Your Goal
Through flexible terms, attractive rates and a goal-focused approach, the My Passion Fund from HDFC Bank allows you to save towards your goal in a hassle-free manner.
You can open your own My Passion Fund today by logging into NetBanking. In case you do not have an HDFC Bank Account yet, you can first open one by clicking here.
Frequently Asked Questions
How does HDFC Bank My Passion Fund work?
With My Passion Fund, you can set a target amount and tenure and the bank will calculate how much you need to save every month towards that target. The instalment amount will be debited from the linked HDFC Bank Account. You may also contribute more every month.
How much can I expect from this fund?
Your My Passion Fund returns depend on the deposit amount, tenure and applicable Fixed Deposit interest rates.
How do I pay my instalment for the HDFC Bank My Passion Fund?
Instalments are debited automatically via standing instructions from your linked HDFC Bank Account.
What types of passions or goals can I save for?
You can save for any personal goal, such as vacations, gadgets, education or a special purchase.
Can I have two My Passion Funds at the same time?
Yes, you can. You can open multiple My Passion Funds to save for different goals.
What are the tax benefits of My Passion Funds?
No specific tax benefits are applicable to My Passion Fund. Interest earned will be taxable per your income tax slab.
*Disclaimer: Terms and conditions apply. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances.
