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HDFC Bank FD Interest Rates

Compound Interest Formula:

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

INR
%
months

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1. What is the Compound Interest Formula?

The compound interest formula calculates the maturity amount of a fixed deposit by accounting for interest earned on both the principal amount and accumulated interest. This differs from simple interest which only calculates interest on the principal amount.

2. How Does the Calculator Work?

The calculator uses the compound interest formula:

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

Where:

Explanation: The formula accounts for interest compounding monthly, which means each month's interest is added to the principal for calculating the next month's interest.

3. Importance of FD Interest Calculation

Details: Accurate FD interest calculation helps investors compare different investment options, plan finances, 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 are HDFC Bank's current FD interest rates?
A: Rates vary by tenure and customer type (general/senior citizen). As of 2023, they range from 3.00% to 7.20% for general public.

Q2: How often is interest compounded in HDFC FDs?
A: Interest is typically compounded quarterly, but this calculator assumes monthly compounding for more precise results.

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

Q4: What's the minimum deposit amount for HDFC FDs?
A: The minimum amount is ₹5,000 for regular FDs and ₹2,000 for special schemes.

Q5: Can I withdraw my FD before maturity?
A: Yes, but premature withdrawals may attract penalty (typically 0.5-1% reduction in interest rate).

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