1. What is HDFC Fixed Deposit?

HDFC Bank Fixed Deposits are a safe investment option that offers guaranteed returns at fixed interest rates. The interest is compounded quarterly or monthly depending on the deposit terms.

2. How Does FD Calculator Work?

The calculator uses the compound interest formula:

Where:

• \( P \) — Principal amount (₹)
• \( R \) — Monthly interest rate (annual rate/12)
• \( N \) — Number of compounding periods (months)
• \( A \) — Maturity amount (₹)

Explanation: The formula accounts for interest earned on both the principal and the accumulated interest over time.

3. Importance of FD Calculation

Details: Accurate FD calculation helps in financial planning, comparing investment options, and understanding the power of compounding.

4. Using the Calculator

Tips: Enter principal amount in ₹, annual interest rate (current HDFC FD rate), and tenure in months. Minimum deposit is ₹5,000 for regular FDs.

5. Frequently Asked Questions (FAQ)

Q1: What are current HDFC FD interest rates?
A: Rates vary (7.00%-7.50% for general public, 7.50%-8.00% for seniors) depending on tenure (7 days to 10 years).

Q2: Is TDS applicable on HDFC FDs?
A: Yes, 10% TDS is deducted if interest exceeds ₹40,000 (₹50,000 for seniors) annually.

Q3: Can I withdraw FD before maturity?
A: Yes, but with penalty (0.50%-1.00% lower interest than contracted rate).

Q4: What's the difference between cumulative and non-cumulative FD?
A: Cumulative pays compounded interest at maturity while non-cumulative pays interest monthly/quarterly.

Q5: Are HDFC FDs safe?
A: Yes, up to ₹5 lakh per depositor is insured under DICGC.