HDFC Fixed Deposit Interest Calculator

Simple Interest Formula:

\[ Interest = PV \times \frac{r}{n} \times n \times t \]

Principal Amount (PV):

Interest Rate (r):

decimal

Compounds per Year (n):

unitless

Time Period (t):

years

Interest Earned:

Unit Converter ▲

Unit Converter ▼

From:	To:

1. What is HDFC Fixed Deposit Interest?

The HDFC Fixed Deposit Interest Calculator helps you estimate the interest you can earn on your fixed deposit investment using the simple interest formula. This is particularly useful for short-term FD investments.

2. How Does the Calculator Work?

The calculator uses the simple interest formula:

\[ Interest = PV \times \frac{r}{n} \times n \times t \]

Where:

$ PV $ — Principal amount ($)
$ r $ — Annual interest rate (decimal)
$ n $ — Number of compounding periods per year
$ t $ — Time period in years

Explanation: The formula calculates the simple interest earned on a fixed deposit by considering the principal amount, interest rate, compounding frequency, and time period.

3. Importance of FD Interest Calculation

Details: Calculating FD interest helps in financial planning, comparing different FD schemes, and understanding the returns on your investment before committing funds.

4. Using the Calculator

Tips: Enter the principal amount in dollars, interest rate in decimal form (e.g., 0.05 for 5%), number of compounding periods per year, and time period in years. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: Is this calculator specific to HDFC Bank?
A: While designed with HDFC's FD rates in mind, the calculator can be used for any bank's fixed deposit as it uses standard simple interest calculation.

Q2: What's the difference between simple and compound interest?
A: Simple interest is calculated only on the principal amount, while compound interest is calculated on the principal plus accumulated interest.

Q3: How often does HDFC compound FD interest?
A: HDFC typically compounds interest quarterly, but this can vary based on the specific FD scheme.

Q4: Are there penalties for early withdrawal?
A: Yes, HDFC may charge a penalty (typically 0.5-1%) for premature withdrawal of fixed deposits.

Q5: Are FD interest earnings taxable?
A: Yes, interest earned on FDs is taxable as per your income tax slab. TDS may be deducted if interest exceeds ₹40,000 (₹50,000 for senior citizens) in a financial year.