1. What is HDFC RD Calculator?

The HDFC RD (Recurring Deposit) Calculator helps estimate the maturity amount for recurring deposits with HDFC Bank. It calculates the total value of your investment based on monthly deposits, interest rate, and time period.

2. How Does the Calculator Work?

The calculator uses the HDFC RD formula:

Where:

• \( P \) — Monthly deposit amount (INR)
• \( r \) — Annual interest rate (in decimal form)
• \( t \) — Time period in years

Explanation: The formula calculates the maturity amount for quarterly compounded recurring deposits, which is the standard compounding frequency for RDs in HDFC Bank.

3. Importance of RD Calculation

Details: Accurate RD calculation helps in financial planning, understanding returns on investment, and comparing different investment options. It enables investors to make informed decisions about their savings.

4. Using the Calculator

Tips: Enter monthly deposit amount in INR, annual interest rate in decimal form (e.g., 0.075 for 7.5%), and time period in years. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is the minimum deposit for HDFC RD?
A: HDFC Bank typically requires a minimum monthly deposit of ₹100 for recurring deposits.

Q2: How is interest calculated on HDFC RD?
A: HDFC calculates RD interest quarterly using the compound interest formula applied to recurring deposits.

Q3: What is the tenure range for HDFC RD?
A: HDFC RD tenure typically ranges from 6 months to 10 years, with flexibility in choosing the duration.

Q4: Are there tax benefits on HDFC RD?
A: Unlike some other investments, RDs generally don't offer tax benefits. The interest earned is taxable as per your income tax slab.

Q5: Can I withdraw my RD prematurely?
A: Yes, but premature withdrawal may attract penalties and the interest rate may be revised to the applicable rate for the period the deposit was maintained.