Compound Interest Formula:
From: | To: |
HDFC Fixed Deposit is a safe investment option where you deposit a lump sum amount for a fixed period at a predetermined interest rate. The interest is compounded quarterly or monthly, leading to higher returns than simple interest.
The calculator uses the compound interest formula:
Where:
Explanation: The formula accounts for compound growth where interest is earned on both principal and accumulated interest.
Details: Accurate FD calculation helps in financial planning, comparing investment options, and understanding the power of compounding over time.
Tips: Enter principal in INR, annual interest rate in percentage, and term in years. All values must be positive numbers.
Q1: How often is interest compounded in HDFC FDs?
A: HDFC compounds interest quarterly by default, but monthly compounding is available for certain tenures.
Q2: What is the minimum investment for HDFC FD?
A: The minimum investment is ₹5,000 for regular FDs and ₹100 for special senior citizen FDs.
Q3: Are HDFC FD interest rates fixed?
A: Yes, the rate is fixed for the entire tenure at the time of investment.
Q4: What are the tax implications?
A: Interest income is taxable as per your income tax slab. TDS is deducted if interest exceeds ₹40,000 (₹50,000 for senior citizens) per year.
Q5: Can I withdraw my FD before maturity?
A: Yes, but premature withdrawals may attract penalty charges (typically 0.5-1% lower interest rate).