1. What is the HDFC Fixed Deposit Calculator?

The HDFC Fixed Deposit Calculator helps you estimate the maturity value of your fixed deposit investment with HDFC Bank. It uses compound interest formula to calculate how much your investment will grow over time.

2. How Does the Calculator Work?

The calculator uses the compound interest formula:

Where:

• \( FV \) — Future Value (maturity amount)
• \( PV \) — Principal Amount (initial investment)
• \( r \) — Annual interest rate (in decimal)
• \( n \) — Number of compounding periods per year
• \( t \) — Time in years

Explanation: The formula accounts for compound interest, where interest is earned on both the principal and accumulated interest.

3. Importance of FD Calculation

Details: Calculating FD returns helps in financial planning, comparing investment options, and understanding how compounding can grow your money over time.

4. Using the Calculator

Tips: Enter principal amount in dollars, 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 deposit for HDFC FD?
A: HDFC typically requires a minimum of ₹5,000 for regular fixed deposits, but this calculator works with any amount.

Q2: Are FD interest rates fixed?
A: Yes, the interest rate is fixed at the time of deposit and remains constant for the entire tenure.

Q3: How is interest taxed?
A: Interest income is taxable as per your income tax slab. TDS may be deducted if interest exceeds ₹40,000 (₹50,000 for senior citizens).

Q4: Can I withdraw my FD early?
A: Yes, but premature withdrawals may attract a penalty (typically 0.5-1% lower interest rate).

Q5: Are HDFC FDs safe?
A: Yes, HDFC Bank FDs are considered safe as they are covered under RBI's deposit insurance up to ₹5 lakh per depositor.