1. What is HDFC FD Interest Calculation?

The HDFC Fixed Deposit Interest Calculator helps you estimate the maturity amount of your fixed deposit investment using the compound interest formula. It calculates both the final amount and the interest earned over the investment period.

2. How Does the Calculator Work?

The calculator uses the compound interest formula:

Where:

• \( P \) — Principal amount (initial investment)
• \( R \) — Monthly interest rate (annual rate divided by 12 months)
• \( N \) — Number of compounding periods (tenure in months)
• \( A \) — Final amount including interest

Explanation: The formula accounts for compound interest where interest is earned on both the principal and accumulated interest.

3. Importance of FD Calculation

Details: Accurate FD calculations help investors plan their finances, compare investment options, and understand the power of compounding over time.

4. Using the Calculator

Tips: Enter principal amount in INR, annual interest rate in percentage, and tenure in months. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is the minimum deposit for HDFC FDs?
A: HDFC typically requires a minimum of ₹5,000 for regular FDs, though amounts may vary for special schemes.

Q2: How often is interest compounded?
A: HDFC compounds interest quarterly by default, but this calculator assumes monthly compounding for more precise results.

Q3: Are FD interest rates fixed?
A: Yes, the interest rate is fixed for the entire tenure at the time of FD booking.

Q4: Is TDS applicable on FD interest?
A: Yes, TDS is deducted if interest exceeds ₹40,000 (₹50,000 for senior citizens) in a financial year.

Q5: Can I withdraw my FD prematurely?
A: Yes, but premature withdrawals may attract a penalty of 0.5-1% on the interest rate.