1. What is HDFC Monthly FD Calculator?

The HDFC Monthly FD Calculator helps you estimate the monthly interest you can earn on a fixed deposit with HDFC Bank. It uses the standard formula for calculating monthly interest on fixed deposits.

2. How Does the Calculator Work?

The calculator uses the HDFC Monthly FD formula:

Where:

• \( P \) — Principal amount (INR)
• \( r \) — Annual interest rate (decimal)

Explanation: The formula calculates monthly interest by dividing the annual interest rate by 12 and multiplying it by the principal amount.

3. Importance of Monthly FD Calculation

Details: Calculating monthly interest helps investors plan their finances, understand their returns, and make informed investment decisions with HDFC fixed deposits.

4. Using the Calculator

Tips: Enter the principal amount in INR and the annual interest rate in decimal format. Both values must be valid (principal > 0, rate ≥ 0).

5. Frequently Asked Questions (FAQ)

Q1: What is the minimum deposit for HDFC FD?
A: The minimum deposit amount for HDFC fixed deposits is typically ₹5,000, but it may vary based on the type of FD.

Q2: How is interest paid in HDFC monthly FD?
A: In monthly FD schemes, interest is paid out every month to the investor's account.

Q3: Are HDFC FDs safe investments?
A: Yes, HDFC Bank fixed deposits are considered safe as they are offered by a reputable bank and covered under deposit insurance.

Q4: Can I withdraw my FD prematurely?
A: Yes, but premature withdrawal may attract penalties and the interest rate may be revised to the applicable rate at the time of withdrawal.

Q5: Are there tax benefits on HDFC FDs?
A: Regular FDs don't offer tax benefits, but tax-saving FDs with a 5-year lock-in period provide deductions under Section 80C of Income Tax Act.