1. What is HDFC Fixed Deposit?

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 2025 rates are competitive and offer various compounding options.

2. How Does the Calculator Work?

The calculator uses the compound interest formula:

Where:

• \( FV \) — Future Value of investment
• \( PV \) — Principal investment amount
• \( r \) — Annual interest rate (decimal)
• \( n \) — Number of compounding periods per year
• \( t \) — Time the money is invested for (years)

Explanation: The formula calculates how much your investment will grow based on compounding interest over time.

3. Importance of FD Calculation

Details: Calculating the future value helps in financial planning, comparing investment options, and setting realistic savings goals.

4. Using the Calculator

Tips: Enter principal amount in dollars, interest rate in percentage, select compounding frequency, and investment period in years.

5. Frequently Asked Questions (FAQ)

Q1: What are HDFC's current FD interest rates?
A: For 2025, rates range from 4.50% to 7.25% depending on tenure and customer category.

Q2: How does compounding frequency affect returns?
A: More frequent compounding (monthly vs annually) yields higher returns due to the compounding effect.

Q3: Are HDFC FDs tax-free?
A: Interest earned is taxable as per your income tax slab. TDS is deducted if interest exceeds ₹40,000 (₹50,000 for seniors).

Q4: Can I withdraw my FD prematurely?
A: Yes, but with a penalty of 0.50% to 1% on the contracted rate, depending on tenure.

Q5: What's the minimum deposit amount?
A: HDFC's minimum FD amount is ₹5,000 for regular deposits and ₹2,000 for senior citizens.