1. What is HDFC FD Interest Calculation?

The HDFC Fixed Deposit interest calculator helps you estimate returns on your fixed deposit investment. It calculates monthly interest based on principal amount, annual interest rate, and tenure.

2. How Does the Calculator Work?

The calculator uses the simple interest formula:

Where:

• \( I \) — Monthly interest (INR)
• \( P \) — Principal amount (INR)
• \( R \) — Monthly interest rate (annual rate / 12, as decimal)

Explanation: The equation calculates monthly interest by converting annual rate to monthly rate and applying it to the principal amount.

3. Importance of FD Interest Calculation

Details: Accurate interest calculation helps in financial planning, comparing FD schemes, and understanding returns before investing.

4. Using the Calculator

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

5. Frequently Asked Questions (FAQ)

Q1: Is this calculator for simple or compound interest?
A: This calculates simple monthly interest. For compound interest, different calculation is needed.

Q2: What are current HDFC FD interest rates?
A: Rates vary by tenure (7 days to 10 years) and customer type (general/senior citizen). Check HDFC's website for current rates.

Q3: Are there penalties for early withdrawal?
A: Yes, HDFC typically charges 1% penalty on the interest rate for premature withdrawals.

Q4: Is TDS deducted on FD interest?
A: Yes, HDFC deducts TDS @10% if interest exceeds ₹40,000 (₹50,000 for senior citizens) annually.

Q5: How often is FD interest paid out?
A: You can choose monthly, quarterly, half-yearly, yearly payout, or reinvestment (cumulative option).