1. What is HDFC Bank FD OD Interest?

The HDFC Bank Fixed Deposit Overdraft (FD OD) interest is the amount charged when you avail an overdraft facility against your fixed deposit. The interest is calculated monthly on the utilized overdraft amount.

2. How Does the Calculator Work?

The calculator uses the OD interest formula:

Where:

• \( OD \) — Overdraft amount (INR)
• \( R_{od} \) — Monthly overdraft interest rate (annual rate divided by 12)
• \( Interest \) — Monthly interest amount (INR)

Explanation: The formula calculates the monthly interest by multiplying the overdraft amount by the monthly interest rate (annual rate divided by 12 months).

3. Importance of OD Interest Calculation

Details: Understanding OD interest helps in financial planning when using overdraft facilities against FDs, allowing you to assess the cost of borrowing against your deposit.

4. Using the Calculator

Tips: Enter the overdraft amount in INR and the annual interest rate in percentage. Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is the typical OD interest rate at HDFC Bank?
A: Rates vary but are typically 1-2% above the FD interest rate, often around 8-10% annually.

Q2: How often is OD interest charged?
A: Interest is calculated monthly and debited to your account.

Q3: What is the maximum OD limit against FD?
A: HDFC typically allows up to 90% of FD value as OD limit.

Q4: Is OD interest tax deductible?
A: Yes, interest paid on OD against FD for business purposes may be tax deductible under Section 36(1)(iii) of Income Tax Act.

Q5: Can I prepay the OD amount?
A: Yes, you can repay the OD amount anytime, and interest will be charged only for the period utilized.