1. What is HDFC Fixed Deposit?

HDFC Bank Fixed Deposits offer safe investment options with guaranteed returns. The interest is compounded quarterly or monthly, depending on the FD scheme selected.

2. How Does the Calculator Work?

The calculator uses the compound interest formula:

Where:

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

Explanation: The formula accounts for monthly compounding of interest, which is common for HDFC Bank FDs.

3. Importance of FD Calculation

Details: Accurate FD calculation helps investors plan their finances, compare different FD schemes, and understand the power of compounding.

4. Using the Calculator

Tips: Enter principal amount in INR, annual interest rate in percentage, and tenure in years. Minimum principal is ₹1000.

5. Frequently Asked Questions (FAQ)

Q1: What is the minimum deposit for HDFC FDs?
A: The minimum deposit amount is ₹1000 for regular FDs and ₹5000 for tax-saving FDs.

Q2: How often is interest compounded?
A: HDFC Bank compounds interest quarterly for most FDs, but some schemes offer monthly compounding.

Q3: Are HDFC FDs taxable?
A: Yes, interest earned is taxable as per your income tax slab. TDS is deducted if interest exceeds ₹40,000 (₹50,000 for senior citizens).

Q4: What are current HDFC FD interest rates?
A: Rates vary (7-8% p.a. for general public, higher for senior citizens) and depend on tenure. Check HDFC website for latest rates.

Q5: Can I withdraw FD before maturity?
A: Yes, but premature withdrawals attract penalty (0.5-1% depending on tenure).