1. What is HDFC FD Interest Calculator?

Definition: This calculator computes the compound interest earned on a Fixed Deposit with HDFC Bank.

Purpose: It helps investors estimate their returns on HDFC fixed deposits before making investment decisions.

2. How Does the Calculator Work?

The calculator uses the compound interest formula:

Where:

• \( P \) — Principal amount ($)
• \( r \) — Annual interest rate (in decimal)
• \( n \) — Time period in years

Explanation: The formula calculates how much your money grows when interest is compounded annually.

3. Importance of FD Interest Calculation

Details: Accurate interest calculation helps in financial planning, comparing investment options, and understanding the power of compounding.

4. Using the Calculator

Tips: Enter the principal amount, HDFC's current FD interest rate (as percentage), and the tenure in years. All values must be > 0.

5. Frequently Asked Questions (FAQ)

Q1: Is this calculator specific to HDFC Bank?
A: While designed with HDFC in mind, it works for any fixed deposit with annual compounding.

Q2: Does this include TDS deductions?
A: No, this shows gross interest. Actual returns may be lower after tax deductions.

Q3: What if interest is compounded quarterly?
A: For quarterly compounding, divide rate by 4 and multiply years by 4 in the formula.

Q4: How current are the interest rates used?
A: You must input HDFC's current FD rates as they change periodically.

Q5: Can I calculate for partial years?
A: Yes, you can enter decimal values for years (e.g., 1.5 for 1 year 6 months).