1. What is HDFC Fixed Deposit?

HDFC Bank Fixed Deposits are a safe investment option that offers guaranteed returns at fixed interest rates. The interest can be compounded quarterly or taken as monthly payouts.

2. How Does the Calculator Work?

The calculator uses the compound interest formula:

Where:

• \( P \) — Principal amount (₹)
• \( R \) — Monthly interest rate (annual rate / 12)
• \( N \) — Number of compounding periods (months)
• \( A \) — Final amount (₹)

Explanation: For cumulative FDs, interest is compounded quarterly. For monthly payout FDs, simple interest is paid out each month.

3. Importance of FD Calculation

Details: Accurate FD calculations help investors plan their finances, compare returns with other investment options, and make informed decisions about tenure and payout frequency.

4. Using the Calculator

Tips: Enter principal amount in INR, annual interest rate in percentage, and tenure in months. Select whether you want cumulative (compounded) interest or monthly payouts.

5. Frequently Asked Questions (FAQ)

Q1: What is the minimum deposit for HDFC FDs?
A: The minimum deposit is ₹5,000 for regular FDs and ₹100 for senior citizens under the "Sweep-in" facility.

Q2: Are HDFC FD interest rates fixed?
A: Yes, the rate remains fixed for the entire tenure at the rate applicable when the FD is booked.

Q3: How is interest taxed?
A: Interest income is taxable as per your income tax slab. TDS is deducted if interest exceeds ₹40,000 (₹50,000 for senior citizens) annually.

Q4: Can I withdraw my FD early?
A: Yes, but premature withdrawals attract a penalty of 0.50-1% on the interest rate.

Q5: What are current HDFC FD rates?
A: Rates vary by tenure (typically 3.00-7.25% for general public, 3.50-7.75% for senior citizens). Check HDFC's website for current rates.