1. What is the HDFC FD Interest Calculator?

The HDFC Fixed Deposit Interest Calculator helps you estimate the maturity amount of your fixed deposit investment using the compound interest formula. It provides an accurate projection of your returns based on principal amount, interest rate, compounding frequency, and time period.

2. How Does the Calculator Work?

The calculator uses the compound interest formula:

Where:

• \( A \) — Maturity amount (₹)
• \( P \) — Principal amount (₹)
• \( r \) — Annual interest rate (decimal)
• \( n \) — Compounding frequency per year
• \( t \) — Time period in years

Explanation: The formula calculates how your investment grows over time with compound interest, where interest is earned on both the principal and accumulated interest.

3. Importance of FD Interest Calculation

Details: Accurate interest calculation helps in financial planning, comparing investment options, and understanding the power of compounding for long-term wealth creation.

4. Using the Calculator

Tips: Enter principal amount in ₹, annual interest rate in percentage, select compounding frequency, and time period in years. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is the minimum investment for HDFC FD?
A: The minimum investment amount for HDFC fixed deposits is typically ₹5,000 for regular FDs.

Q2: How often is interest compounded in HDFC FDs?
A: HDFC offers various compounding options including monthly, quarterly, half-yearly, and annual compounding.

Q3: Are HDFC FD returns taxable?
A: Yes, interest earned on fixed deposits is taxable as per your income tax slab rate.

Q4: Can I withdraw my FD prematurely?
A: Yes, but premature withdrawal may attract penalty charges and the interest rate may be revised downward.

Q5: How does compounding frequency affect returns?
A: More frequent compounding (monthly vs annually) results in higher returns due to the compounding effect.