1. What is the HDFC FD Interest Calculator?

The HDFC Fixed Deposit Interest Calculator helps you estimate the maturity amount and interest earned on your fixed deposit investment with HDFC Bank using the compound interest formula.

2. How Does the Calculator Work?

The calculator uses the compound interest formula:

Where:

• \( P \) — Principal amount (initial investment)
• \( R \) — Monthly interest rate (annual rate divided by 12, as decimal)
• \( N \) — Number of compounding periods (months)
• \( A \) — Final amount including principal and interest

Explanation: The formula accounts for compounding where interest is earned on both the principal and accumulated interest.

3. Importance of FD Interest 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 in percentage, and tenure in months or years. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: How often does HDFC compound FD interest?
A: HDFC typically compounds interest quarterly, but this calculator uses monthly compounding for more precise estimates.

Q2: Are there penalties for premature withdrawal?
A: Yes, HDFC may charge a penalty (usually 0.5-1%) for premature FD withdrawals before the maturity period.

Q3: Is the interest earned taxable?
A: Yes, FD interest is taxable as per your income tax slab. TDS is deducted if interest exceeds ₹40,000 (₹50,000 for senior citizens).

Q4: Can I get monthly interest payouts?
A: Yes, HDFC offers monthly, quarterly, or cumulative interest options, but this calculator assumes reinvestment (cumulative option).

Q5: How accurate is this calculator?
A: This provides an estimate. Actual returns may vary slightly based on HDFC's specific compounding frequency and rounding rules.