HDFC Bank Institutional Savings Account

HDFC Bank Institutional Savings Account
Minimum Average Balance Zero
Interest Rate 3.00% to 4.50%
Eligible Candidates Approved NGOs, entities, and institutions as per the RBI

HDFC Bank Institutional Savings Account offers easy banking facilities for NGOs and Institutions. The HDFC Bank Savings Account interest rate is between 3:00% and 4.50% depending on the daily balance. The benefits include payments and collections management and solutions. Net banking, phone banking, mobile banking, free email statements, Standing Instructions, InstaAlerts, cheque books, and many other such features are available. The bank also helps with salary disbursements, collection of donations, free and unlimited Demand Drafts at all HDFC Bank locations.

In this post, we will discuss HDFC Bank Institutional Savings Account features, interest rates, eligible entities, those who are not eligible, documents required, fees and charges, and frequently asked questions.

Features of HDFC Bank Institutional Savings Account

Here are the features of this HDFC Bank Savings Account:

  • Manage a collection of donations, fees, and more through different online channels, for which you have to first link the savings account to the bank’s Payment Kiosk, POS terminals, Payment Gateways, and more.
  • But the collection of fees, donations, etc is also possible at the branch through the Cash Management Services Team.
  • The corporate payment software Enet facilitates online payments such as vendor payments, salary disbursements, etc.
  • You can opt for email bank statements daily/weekly/monthly. Or, you can also get free monthly account statements by email.
  • Net banking, mobile banking, phone banking helps to ease banking. You can pay utility bills, check account balances, stop cheque payments through SMS, and a lot more.
  • No usage charge for the free payable at par cheque book.
  • Free-of-cost collection of the outstation cheque at all the locations of HDFC Bank in the country.
  • Free and unlimited Demand Drafts at all the locations of HDFC Bank.

HDFC Bank Institutional Savings Account Interest Rates

Here are the details:

  • HDFC Bank Institutional Savings Account Interest Rate is 3.00% for balances less than Rs. 50 lakhs.
  • The rate is 3.50% for a balance of and over Rs. 50 lakhs to less than Rs. 1,000 crores.
  • For the balance of and over Rs. 1,000 crores, the rate of interest is 4.50%.
  • The interest is calculated on the daily balance in the account. The earned interest will be paid at quarterly intervals.

Eligible Entities for HDFC Bank Institutional Savings Account

Here are the entities that can open this type of HDFC savings account:

  • Khadi and village industries boards.
  • Bank-financed primary cooperative credit society.
  • Agriculture product market communities.
  • Section 25 Companies (as per Companies Act, 1956).
  • Section 8 Companies (as per Companies Act,2013).
  • Development of Women and Children in Rural Areas (DWCRA)
  • Farmers' Clubs - Vikas Volunteer Vahini – VVV
  • Entities or institutions whose income is exempt from paying the income tax under the IT Act, 1961.
  • Registered or unregistered groups, self-help groups, directed towards promotions of savings habits in members.
  • Societies registered under the Societies Registration Act, 1860 or any other relevant law in force at a Union Territory or State, except societies registered under specific state enactments that create Land Mortgage Banks or State Cooperative Societies Acts.
  • Government bodies/departments/agencies in respect to subsidies/grants released for the introduction of various schemes/programs, and those sponsored by the State/Central government, but subject to authorization from the respective department of the government to open a savings account in a bank.

Those Who Cannot Open HDFC Bank Institutional Savings Account

Here are more details:

  • State Housing Boards.
  • Panchayat Samitis.
  • Municipal Corporations or Municipal Committees.
  • Government bodies or departments depend on the budgetary allocations for their functions and performance of the same.
  • Drainage Boards/Water and Sewerage/Societies/State Text Book Publishing Corporations/State or District Level Housing Cooperative/Metropolitan Development Authority/Business or professional dealings by a trading firm or political party, be it in a partnership firm, association, company, or as a proprietor.

Documents Required for HDFC Bank Institutional Savings Account

Here is the general documentation for this HDFC Bank Savings Account:

  • Copy of PAN Card.
  • Address proof of the entity.
  • Registration Certificate of the Trust/Association/Society/Club.
  • KYC documents of the authorized signatories.
  • Beneficial Ownership declaration.
  • Certified copy of the resolution to open and operate the SB account.
  • Income Tax registration u/s 12A for entities according to the RBI circular
  • Duly authenticated list of current Trustees/Office bearers on the letter-head of the entity
  • Bye-laws/Trust Deed/Constitution Documents. If the entity is not registered, then a notarized copy for the same is necessary.

HDFC Bank Institutional Savings Account Fees and Charges

Here are these HDFC Bank Savings Account fees and charges:

Type of Charges Institutional Savings Account
Minimum Balance (Average Monthly Balance) Zero
Cheque Book Free
Account Statements Free monthly statements
Issue of Ad Hoc/Duplicate Statements Physical copy -
Rs 100 at the branch
Rs.75 if through Phone Banking (Non-IVR)-
Rs.50 if through ATM, Net Banking, Phone Banking (IVR), or Mobile Banking
Soft Copy -
Free if it is for the existing and previous year statement via net banking
Free if it is e-Statement requested on the registered Email ID
Hold Statement Annual fee of Rs. 400
Demand Drafts- Issued - On Non-HDFC Bank Locations
Rs. 50 + charges as mentioned here:
Rs. 10 For up to Rs. 500
Rs. 15 Above Rs. 500 to Rs. 1000
Rs. 25 Above Rs. 1000 to Rs. 5000
Rs. 30 Above Rs. 5000 to Rs. 10,000
Rs. 3 per 1000 or part thereof Above Rs. 10,000 to Rs. 1 Lakh
Rs. 6 per 1000 or part thereof (Min Rs 300 - to Max Rs 10,000/-) Above Rs. 1 lakh
Collection of outstation cheques - other locations  
Trust Account Charges for cheques drawn on non-branch locations
Rs. 25 Up to Rs 10,000
Rs. 100 Rs. 10,000/- to Rs. 1,00,000/-
Rs. 150 Rs. 1,00,001/- and above
No charges for cheques drawn on Speed clearing branches
Charges for Cheque Return Drawn on the HDFC Bank Rs. 50 per instance for cheque return due to technical reasons such as post-dated, date not mentioned, sign mismatch, or others
Rs. 450 for the first instance in a month
Rs. 450 for cheque return due to funds transfer
Rs. 500 for the second instance in the same month
Rs. 550 for the third instance and over in the same month
Interest Certificate Rs. 100
Balance Certificate Rs. 100
Balance Enquiry - at Branch Free
Cheques deposited returned unpaid Rs.100
Address Confirmation Rs 100 per instance
Signature Attestation Rs.100
Photo Attestation Rs.100
Charges for Stop Payment Rs. 50 for a cheque and Rs. 100 for a range of cheques
No charges if done through net banking or phone banking
Standing Instructions No charges for setup
Rs. 25 per transaction + remittance charges
Old records/copies of paid cheques Rs.80
Cash transactions conducted inter branch including third party transactions at non-branch accounts via teller counters No charges for cash transactions of up to Rs. 5 lakhs
Rs. 5 per Rs. 1,000 if over Rs. 5 lakhs on the entire amount
Visa Money Transfer Rs. 5 + taxes per transaction
InstaPay Rs.10 + taxes per transaction
NEFT Charges for Indo Nepal Transactions Rs. 20 for customers with Nepal State Bank Ltd. (NSBL) Account
For customers with a non-NSBL account, it is Rs. 70 for up to Rs. 5000. Rs. 95 for over Rs. 5,000
ECS/ACH (Debit) Return These are per transaction charges:
Rs. 450 for the first instance in a month
Rs. 500 for the second instance in a month
Rs. 550 for the third instance in a month
Any Deliverable returned by courier because of negative reasons such as consignee shifted, no such consignee, no such address, etc Rs 50 per instance
Physical dispatch of TIN/IPIN Regeneration requests received at the branch Rs.40
Rejection of Standing Instructions Rs 200 per instance
Mandate Registration Rs.40

Frequently Asked Questions about HDFC Bank Institutional Savings Account

Here are the HDFC Bank Savings Account FAQs:

Here is more to know:

  • No charges if closed within the first 14 days
  • Rs. 500 for 15 days to up to 6 months
  • Rs. 500 for 6 months and up to 12 months
  • No charges if it is beyond 12 months

Since this savings account is a zero balance one, there are no charges for the non-maintenance of the minimum or average monthly balance.

Here are the details:

  • For business debit cards and regular debit cards, there are no annual fees.
  • The daily ATM withdrawal limit is Rs. 50,000 for a business debit card.
  • The same is Rs. 25,000 for a regular debit card.
  • The daily limit for a merchant establishment point of sale is Rs. 75,000 for business debit cards and Rs. 40,000 for a regular debit card.

Here are the details:

  • InstaAlert services are provided via SMS and email.
  • The email alerts are free-of-cost.
  • For SMS service, if you pay Rs. 3 per quarter, then you have to pay 20 paise + GST per SMS.
  • If you wish to unsubscribe or modify this service then visit the mobile banking app, go to your profile, and access the relevant section.
  • Similarly, you can access the InstaAlert Registration section through net banking. The section will appear at the top of the screen.

The cross-currency mark-up for foreign currency transactions is 3.5% conducted on International Debit Cards. The bank uses the VISA/MasterCard wholesale exchange rate that exists at the transaction time.

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