1. What is HDFC Bank FD Monthly Interest?

The HDFC Bank Fixed Deposit monthly interest is calculated on the principal amount using the monthly interest rate derived from the annual rate. It provides a predictable return on your investment.

2. How Does the Calculator Work?

The calculator uses the simple interest formula:

Where:

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

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

3. Importance of FD Interest Calculation

Details: Accurate interest calculation helps in financial planning, comparing investment options, and understanding returns from fixed deposits.

4. Using the Calculator

Tips: Enter principal amount in INR and annual interest rate in percentage. All values must be valid (principal > 0, rate > 0).

5. Frequently Asked Questions (FAQ)

Q1: Is the interest compounded monthly?
A: No, this calculator shows simple monthly interest. For compound interest, a different formula would be used.

Q2: Are there any taxes on FD interest?
A: Yes, interest income from FDs is taxable as per your income tax slab. TDS may be deducted if interest exceeds ₹40,000 (₹50,000 for senior citizens).

Q3: What is the minimum deposit for HDFC FD?
A: HDFC Bank typically requires a minimum of ₹5,000 for fixed deposits, but this may vary.

Q4: Can I get monthly payouts from HDFC FD?
A: Yes, HDFC offers monthly interest payout options on fixed deposits.

Q5: How does this compare to cumulative FD?
A: Monthly payout FDs typically offer slightly lower returns than cumulative FDs where interest is compounded.