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Monthly Interest Formula:
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The Monthly Interest Payout Calculator for HDFC Fixed Deposits calculates the monthly interest income you can expect from your fixed deposit investment. It helps investors plan their monthly cash flows from FD investments.
The calculator uses the formula:
Where:
Explanation: The formula divides the annual interest rate by 12 to get the monthly rate, then multiplies by the principal amount to calculate the monthly interest payout.
Details: Calculating monthly interest payouts helps investors understand their regular income from fixed deposits, plan monthly budgets, and compare different investment options for optimal cash flow management.
Tips: Enter the principal amount in INR and the annual interest rate as a percentage. Both values must be positive numbers to get accurate results.
Q1: Is the calculated amount the exact payout I will receive?
A: The calculation provides an estimate. Actual payouts may vary slightly due to rounding practices and specific bank policies.
Q2: Does HDFC offer monthly interest payout on all FD schemes?
A: Most HDFC fixed deposit schemes offer monthly payout options, but terms may vary. Check with your bank for specific scheme details.
Q3: Are there any taxes deducted from the monthly interest?
A: Yes, TDS (Tax Deducted at Source) may apply on interest income as per current tax regulations. The net amount received may be lower than the calculated amount.
Q4: Can I change from monthly payout to cumulative option later?
A: Generally, the payout frequency is selected at the time of FD creation and cannot be changed during the tenure. Check with HDFC for their specific policies.
Q5: Is the interest rate fixed for the entire FD tenure?
A: For fixed rate FDs, the rate remains constant. For floating rate FDs, the rate may change during the tenure based on market conditions.