1. What is the HDFC FD Calculator?

The HDFC FD Calculator helps you estimate the maturity amount of your fixed deposit investment with HDFC Bank using the compound interest formula. It calculates both the final amount and the interest earned over the investment period.

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 interest

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

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 in percentage, and tenure in months. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is the minimum deposit for HDFC FDs?
A: The minimum deposit amount for HDFC Bank FDs is typically ₹5,000 for regular FDs, though this may vary for special schemes.

Q2: How often is interest compounded in HDFC FDs?
A: HDFC Bank compounds interest quarterly for most fixed deposits, though some special schemes may have different compounding frequencies.

Q3: Are there tax benefits on HDFC FDs?
A: Regular FDs don't offer tax benefits, but tax-saving FDs (with 5-year lock-in) under Section 80C provide tax deductions up to ₹1.5 lakh per year.

Q4: What is the current interest rate for HDFC FDs?
A: Interest rates vary by tenure and change periodically. Check HDFC Bank's official website for current rates before investing.

Q5: Can I withdraw my FD before maturity?
A: Premature withdrawal is allowed but may attract penalty charges (typically 0.5-1% reduction in interest rate) except for tax-saving FDs which have a lock-in period.