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. The interest is compounded quarterly or monthly depending on the FD scheme.

2. How Does the Calculator Work?

The calculator uses the compound interest formula:

Where:

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

Explanation: The formula calculates how your investment grows with compound interest, where interest is earned on both principal and accumulated interest.

3. Importance of FD Calculation

Details: Calculating FD returns helps in financial planning, comparing different investment options, and understanding how compounding can grow 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: What is the minimum deposit for HDFC FD?
A: The minimum deposit amount is ₹5,000 for regular FDs and ₹100 for special senior citizen FDs.

Q2: How often is interest compounded in HDFC FDs?
A: Interest is typically compounded quarterly, but some schemes may offer monthly compounding.

Q3: Are HDFC FD interest rates fixed?
A: Yes, the interest rate remains fixed for the entire tenure of the FD at the rate applicable when you book it.

Q4: Is TDS applicable on HDFC FDs?
A: Yes, TDS is applicable if interest earned exceeds ₹40,000 (₹50,000 for senior citizens) in a financial year.

Q5: Can I withdraw my FD before maturity?
A: Yes, but premature withdrawals may attract a penalty of 0.5-1% on the interest rate.