1. What is Compound Interest?

Compound interest is interest calculated on the initial principal and also on the accumulated interest of previous periods. It allows your investment to grow at an accelerating rate over time.

2. How Does FD Calculator Work?

The calculator uses the compound interest formula:

Where:

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

Explanation: The formula accounts for periodic compounding where interest is added to the principal at regular intervals.

3. Importance of FD Calculation

Details: Accurate FD calculation helps you plan investments, compare returns, and make informed financial decisions for your future.

4. Using the Calculator

Tips: Enter principal amount in PKR, annual interest rate in percentage, investment period in years, and select compounding frequency. All values must be valid (principal > 0, rate > 0, years between 1-30).

5. Frequently Asked Questions (FAQ)

Q1: What is the minimum investment for HDFC FD in Pakistan?
A: The minimum investment amount varies by product but typically starts from PKR 10,000 for regular fixed deposits.

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

Q3: Is TDS applicable on HDFC FDs in Pakistan?
A: Yes, tax is deducted at source (TDS) on interest income as per Pakistan tax laws.

Q4: Can I withdraw my FD before maturity?
A: Premature withdrawal is allowed but may attract penalty charges and reduced interest rates.

Q5: How often is interest paid out?
A: You can choose monthly, quarterly, or annual payouts, or reinvest the interest (cumulative option).