1. What is HDFC Fixed Deposit?

HDFC Bank Fixed Deposit is a safe investment option where you deposit a lump sum amount for a fixed tenure at a predetermined interest rate, earning higher returns than regular savings accounts.

2. How Does the Calculator Work?

The calculator uses the compound interest formula:

Where:

• \( P \) — Principal amount (INR)
• \( R \) — Monthly interest rate (annual rate / 12, as decimal)
• \( N \) — Number of compounding periods (months)
• \( A \) — Final amount (INR)

Explanation: Interest is compounded quarterly for most HDFC FDs, but this calculator provides monthly compounding for more precise estimates.

3. Importance of FD Calculation

Details: Calculating FD returns helps in financial planning, comparing investment options, and understanding how compounding grows your money over time.

4. Using the Calculator

Tips: Enter principal amount in INR, annual interest rate (e.g., 7.20), and tenure in years (can use decimals for months). Current HDFC FD rates range from 3.00% to 7.25% depending on tenure.

5. Frequently Asked Questions (FAQ)

Q1: What is the minimum deposit for HDFC FD?
A: The minimum deposit is ₹5,000 for regular FDs and ₹100 for special senior citizen FDs.

Q2: Are HDFC FD interest rates fixed?
A: Yes, the rate is fixed at the time of deposit and remains constant throughout the tenure.

Q3: Is TDS applicable on HDFC FDs?
A: Yes, TDS is deducted at 10% if interest exceeds ₹40,000 (₹50,000 for senior citizens) annually.

Q4: Can I withdraw my FD prematurely?
A: Yes, but with a penalty of 0.50-1.00% on the interest rate.

Q5: How often is interest paid out?
A: You can choose monthly, quarterly, half-yearly, yearly payout, or reinvestment (cumulative option).