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HDFC FD Calculator Monthly Interest

Monthly Interest Formula:

\[ I = P \times R \]

INR
%

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1. What is Monthly Interest Calculation?

The monthly interest calculation for HDFC fixed deposits determines how much interest you earn each month on your principal investment. It's based on the principal amount and the applicable interest rate.

2. How Does the Calculator Work?

The calculator uses the simple interest formula:

\[ I = P \times R \]

Where:

Explanation: The annual interest rate is divided by 12 to get the monthly rate, then multiplied by the principal amount to calculate monthly interest.

3. Importance of Interest Calculation

Details: Understanding monthly interest helps in financial planning, comparing FD schemes, and estimating returns on your investments.

4. Using the Calculator

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

5. Frequently Asked Questions (FAQ)

Q1: Is this calculation for simple or compound interest?
A: This calculates simple monthly interest. HDFC FDs typically use quarterly compounding.

Q2: Are there any taxes on FD interest?
A: Yes, FD interest is taxable as per your income tax slab. TDS may be deducted if interest exceeds ₹40,000 (₹50,000 for senior citizens).

Q3: What is the minimum deposit for HDFC FDs?
A: HDFC generally requires a minimum of ₹5,000 for fixed deposits.

Q4: Can I get monthly interest payouts?
A: Yes, HDFC offers monthly interest payout options for certain FD tenures.

Q5: How accurate is this calculator?
A: This provides an estimate. Actual interest may vary based on exact deposit date, bank policies, and compounding frequency.

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