1. What is HDFC FD Monthly Interest?

The HDFC Fixed Deposit Monthly Interest calculation determines how much interest you earn each month on your fixed deposit investment with HDFC Bank. The interest is calculated based on your principal amount and the applicable interest rate.

2. How Does the Calculator Work?

The calculator uses the simple interest formula:

Where:

• \( I \) — Monthly interest (INR)
• \( P \) — Principal amount (INR)
• \( R \) — Monthly interest rate (annual rate divided by 12, as decimal)

Explanation: The annual interest rate is converted to a monthly rate by dividing by 12, then multiplied by the principal amount to get the monthly interest.

3. Importance of FD Interest Calculation

Details: Calculating monthly interest helps investors understand their expected returns, plan cash flows, and compare different investment options.

4. Using the Calculator

Tips: Enter the principal amount in INR and the annual interest rate in percentage. Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: Is the interest compounded monthly?
A: This calculator shows simple monthly interest. For compound interest, the calculation would be different.

Q2: What is the minimum deposit for HDFC FD?
A: HDFC typically requires a minimum of ₹5,000 for regular fixed deposits.

Q3: Are there tax implications on FD interest?
A: Yes, FD interest is taxable as per your income tax slab. TDS may be deducted if interest exceeds ₹40,000 (₹50,000 for senior citizens).

Q4: Can I get monthly payout of FD interest?
A: Yes, HDFC offers monthly interest payout option on fixed deposits.

Q5: How often does HDFC change FD rates?
A: FD rates are reviewed periodically based on RBI policy and market conditions.