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HDFC Monthly Payout FD Formula:
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The HDFC Monthly Payout Fixed Deposit Calculator helps investors calculate the monthly interest income they can expect from their fixed deposit investments with HDFC Bank. This is particularly useful for retirees and those seeking regular income streams.
The calculator uses the simple interest formula for monthly payout:
Where:
Explanation: The formula calculates the total interest over the tenure and divides it by 12 to get the monthly payout amount. This assumes simple interest calculation for monthly payout FDs.
Details: Accurate monthly payout calculation helps in financial planning, especially for individuals who depend on fixed income for their monthly expenses. It allows better budgeting and investment decision-making.
Tips: Enter the principal amount in your local currency, annual interest rate in percentage, and tenure in years. All values must be positive numbers for accurate calculation.
Q1: What is the difference between monthly payout and cumulative FD?
A: Monthly payout FD provides regular monthly interest income, while cumulative FD compounds interest and pays the total amount at maturity.
Q2: Is the monthly interest payout fixed throughout the tenure?
A: Yes, for fixed rate FDs, the monthly payout remains constant throughout the deposit period unless the bank changes its interest rates.
Q3: Can I withdraw my FD before maturity in monthly payout scheme?
A: Yes, but premature withdrawal may attract penalties and the interest rate may be revised as per bank's terms and conditions.
Q4: Are there tax implications on monthly interest payouts?
A: Yes, monthly interest income is taxable as per your income tax slab in the year of receipt. TDS may be deducted by the bank.
Q5: What is the minimum deposit amount for HDFC monthly payout FD?
A: The minimum amount varies, but typically starts from a few thousand currency units. Check with HDFC Bank for current requirements.