HDFC Bank FD Interest Calculator ICICI

Compound Interest Formula:

\[ A = P \times (1 + R)^N \]

Principal Amount (P):

INR

Annual Interest Rate:

Tenure:

years

Compounding Frequency:

Maturity Amount (A):

Interest Earned:

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1. What is the Compound Interest Formula?

The compound interest formula calculates the amount of interest earned on a fixed deposit where the interest is added to the principal at regular intervals, resulting in interest being earned on interest.

2. How Does the Calculator Work?

The calculator uses the compound interest formula:

\[ A = P \times (1 + R)^N \]

Where:

\( A \) — Final amount (maturity value)
\( P \) — Principal amount (initial investment)
\( R \) — Interest rate per compounding period (annual rate divided by compounding frequency)
\( N \) — Total number of compounding periods (years × compounding frequency)

Explanation: The formula accounts for the exponential growth of your investment due to compounding interest over time.

3. Importance of FD Calculation

Details: Accurate FD calculations help you compare different investment options, plan your finances, and understand how compounding can significantly increase your returns over time.

4. Using the Calculator

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

5. Frequently Asked Questions (FAQ)

Q1: How does HDFC FD compare to ICICI FD?
A: Both banks offer competitive rates, but the actual returns depend on the principal amount, tenure, and compounding frequency. This calculator helps you compare potential returns.

Q2: What is the difference between simple and compound interest?
A: Simple interest is calculated only on the principal amount, while compound interest is calculated on the principal plus accumulated interest.

Q3: How often is interest compounded in HDFC FDs?
A: HDFC typically compounds interest quarterly, but you can choose monthly, quarterly, or annual compounding in this calculator.

Q4: Are FD interest rates fixed?
A: Yes, the interest rate is fixed at the time of FD booking for the entire tenure, unless you choose a floating rate FD.

Q5: Is there a penalty for premature withdrawal?
A: Most banks charge a penalty (typically 0.5-1%) for premature withdrawal of FDs, which would affect your actual returns.