Fd Calculator For Hdfc Bank

HDFC FD Quarterly Compounding Formula:

\[ Maturity = P \times (1 + \frac{r}{400})^{(\frac{Days}{365} \times 4)} \]

Maturity Amount:

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1. What is HDFC FD Quarterly Compounding?

HDFC Bank Fixed Deposits with quarterly compounding calculate interest every three months, allowing your investment to grow faster through the power of compound interest. This method reinvests the interest earned each quarter, leading to higher returns over time.

2. How Does the Calculator Work?

The calculator uses the HDFC FD quarterly compounding formula:

\[ Maturity = P \times (1 + \frac{r}{400})^{(\frac{Days}{365} \times 4)} \]

Where:

\( P \) — Principal amount (INR)
\( r \) — Annual interest rate (%)
\( Days \) — Investment period in days
\( 400 \) — Quarterly compounding factor (4 quarters × 100)
\( 365 \) — Days in a year
\( 4 \) — Number of quarters in a year

Explanation: The formula calculates the maturity amount by compounding interest quarterly, where interest earned each quarter is added to the principal for the next quarter's calculation.

3. Importance of FD Maturity Calculation

Details: Accurate FD maturity calculation helps investors plan their finances, compare investment options, and make informed decisions about fixed deposit investments with HDFC Bank.

4. Using the Calculator

Tips: Enter principal amount in INR, annual interest rate in percentage, and investment period in days. All values must be positive numbers for accurate calculation.

5. Frequently Asked Questions (FAQ)

Q1: What is quarterly compounding in HDFC FDs?
A: Quarterly compounding means interest is calculated and added to the principal every three months, allowing your investment to grow faster through compound interest.

Q2: How does quarterly compounding differ from annual compounding?
A: Quarterly compounding calculates interest four times a year, while annual compounding calculates once. Quarterly compounding typically yields higher returns due to more frequent compounding.

Q3: What are the current HDFC FD interest rates?
A: HDFC FD rates vary based on tenure and customer type. Please check HDFC Bank's official website for current rates as they are subject to change.

Q4: Is TDS applicable on HDFC FDs?
A: Yes, TDS is applicable on interest income from FDs if it exceeds ₹40,000 (₹50,000 for senior citizens) in a financial year.

Q5: Can I withdraw my HDFC FD before maturity?
A: Yes, but premature withdrawal may attract penalty charges and the interest rate may be revised to the rate applicable for the period the FD was held.