1. What is the HDFC FD Interest Calculator?

The HDFC Fixed Deposit Interest Calculator helps you estimate your monthly interest earnings and maturity amount for fixed deposits with HDFC Bank based on the principal amount, interest rate, and tenure.

2. How Does the Calculator Work?

The calculator uses the simple interest formula:

Where:

• \( I \) — Monthly interest (INR)
• \( P \) — Principal amount (INR)
• \( R \) — Monthly interest rate (annual rate / 12, as decimal)

Explanation: The calculator first converts the annual interest rate to a monthly rate by dividing by 12, then calculates the monthly interest by multiplying the principal by this monthly rate.

3. Importance of FD Interest Calculation

Details: Calculating FD interest helps in financial planning, comparing different investment options, and understanding the exact returns from your fixed deposit investments.

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: Does this calculator account for compound interest?
A: No, this calculates simple monthly interest. For compound interest, a different formula would be needed.

Q2: What are current HDFC FD interest rates?
A: Rates vary by tenure and customer type. Check HDFC's official website for current rates before investing.

Q3: Are there penalties for early withdrawal?
A: Yes, HDFC typically charges a penalty of 0.5-1% on the interest rate for premature withdrawals.

Q4: How is interest paid out in HDFC FDs?
A: Interest can be paid monthly, quarterly, half-yearly, annually, or at maturity, depending on the FD scheme.

Q5: Are FD interest earnings taxable?
A: Yes, interest earned is taxable as per your income tax slab. TDS may be deducted if interest exceeds ₹40,000 (₹50,000 for senior citizens).