1. What is the HDFC FD Calculator?

The HDFC Fixed Deposit Calculator helps you estimate the maturity amount of your fixed deposit investment using the compound interest formula. It provides comparable results to SBI fixed deposit rates for easy comparison.

2. How Does the Calculator Work?

The calculator uses the compound interest formula:

Where:

• \( P \) — Principal amount (initial investment)
• \( R \) — Monthly interest rate (annual rate divided by 12)
• \( N \) — Number of compounding periods (months)
• \( A \) — Maturity amount

Explanation: The formula accounts for monthly compounding, which is standard for most bank fixed deposits in India.

3. Importance of FD Calculation

Details: Accurate FD calculations help in financial planning, comparing different bank offers, and understanding the power of compounding over time.

4. Using the Calculator

Tips: Enter principal amount in INR, annual interest rate in percentage, and tenure in years. The calculator automatically converts these to monthly values for the calculation.

5. Frequently Asked Questions (FAQ)

Q1: How does HDFC FD compare to SBI FD?
A: Both banks offer competitive rates. HDFC often has special rates for senior citizens and higher amounts, while SBI rates are considered benchmark rates.

Q2: Is the interest compounded monthly or quarterly?
A: Most banks compound interest quarterly, but this calculator uses monthly compounding for more precise results.

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

Q4: What is the minimum deposit for HDFC FD?
A: Typically ₹5,000 for regular FDs, but may vary for special schemes.

Q5: Can I get monthly interest payouts?
A: Yes, most banks offer monthly, quarterly, or cumulative interest options, though rates may vary.