1. What is HDFC FD Monthly Payout?

The HDFC Bank Fixed Deposit monthly payout option allows investors to receive interest earnings every month while the principal remains invested. This is ideal for those needing regular income from their investments.

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 ÷ 100)
• \( I \) — Monthly interest payout (INR)

Explanation: The calculation converts the annual rate to a monthly rate (dividing by 12) and converts percentage to decimal (dividing by 100) before applying to the principal.

3. Importance of FD Interest Calculation

Details: Accurate interest calculation helps in financial planning, comparing different FD options, and understanding the regular income you can expect from your investment.

4. Using the Calculator

Tips: Enter principal amount in INR and annual interest rate in percentage. Both values must be positive numbers for accurate calculation.

5. Frequently Asked Questions (FAQ)

Q1: Is the monthly payout interest compounded?
A: No, monthly payout FDs use simple interest calculation. The principal remains constant throughout the tenure.

Q2: What is the minimum deposit for HDFC monthly interest FD?
A: HDFC typically requires a minimum of ₹5,000 for fixed deposits with monthly payout option.

Q3: Are there tax implications for monthly interest?
A: Yes, monthly interest is taxable as income in the year it's received, and TDS may apply if interest exceeds ₹5,000 annually (₹50,000 for senior citizens).

Q4: Can I change from monthly payout to cumulative later?
A: Generally no, the payout frequency is fixed at the time of FD creation. You would need to break the FD and create a new one.

Q5: How does this compare to cumulative FD?
A: Monthly payout gives regular income but lower overall returns compared to cumulative FD where interest is compounded quarterly.