1. What is HDFC Fixed Deposit?

HDFC Bank Fixed Deposits are a safe investment option that offers guaranteed returns at a fixed interest rate for the chosen tenure. The 2025 rates are projected based on current economic trends.

2. How Compound Interest Works

The calculator uses the compound interest formula:

Where:

• \( P \) — Principal amount (initial investment)
• \( R \) — Monthly interest rate (annual rate ÷ 12)
• \( N \) — Total number of compounding periods (months)
• \( A \) — Final amount including interest

Explanation: Interest is calculated monthly and added to the principal, resulting in "interest on interest" effect.

3. 2025 FD Rates Information

Details: For 2025, HDFC Bank is expected to offer interest rates between 6.75% to 7.50% for general public (higher for senior citizens) for tenures ranging from 7 days to 10 years.

4. Using the Calculator

Tips: Enter principal amount (minimum ₹1000), projected 2025 interest rate, and tenure in years. The table shows month-by-month growth of your investment.

5. Frequently Asked Questions (FAQ)

Q1: What is the minimum deposit amount for HDFC FD?
A: The minimum investment is ₹5,000 for regular FDs, though some special schemes may have lower minimums.

Q2: How often is interest compounded?
A: Interest is typically compounded quarterly, but this calculator shows monthly compounding for detailed projections.

Q3: Are HDFC FDs tax-free?
A: No, interest income is taxable as per your income tax slab. TDS is deducted if interest exceeds ₹40,000 (₹50,000 for senior citizens).

Q4: Can I withdraw my FD prematurely?
A: Yes, but with a penalty of 0.5-1% on the interest rate, depending on tenure.

Q5: Are HDFC FDs safe?
A: Yes, they carry very low risk as HDFC Bank is a systemically important bank with strong financials.