1. What is Fixed Deposit Maturity Calculation?

The Fixed Deposit Maturity calculation determines how much your investment will grow over time based on the principal amount, interest rate, compounding frequency, and term length. HDFC Bank offers competitive FD rates with various compounding options.

2. How Does the Calculator Work?

The calculator uses the compound interest formula:

Where:

• \( Principal \) — Initial investment amount
• \( Rate \) — Annual interest rate (as decimal)
• \( Compounding \) — Number of times interest is compounded per year
• \( Years \) — Term length in years

Explanation: The formula accounts for the effect of compounding, where interest is earned on both the principal and accumulated interest.

3. Importance of FD Calculation

Details: Calculating FD maturity helps in financial planning, comparing investment options, and understanding how compounding affects your returns over time.

4. Using the Calculator

Tips: Enter principal amount in dollars, annual interest rate as percentage, select compounding frequency, and term in years. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What are HDFC Bank's current FD rates?
A: Rates vary by term and customer type. Check HDFC Bank's official website for current rates before investing.

Q2: How does compounding frequency affect returns?
A: More frequent compounding (monthly vs annually) results in higher returns due to the compounding effect.

Q3: Are FD interest earnings taxable?
A: Yes, interest earned is taxable as per your income tax slab. TDS may apply if interest exceeds ₹40,000 (₹50,000 for senior citizens).

Q4: Can I withdraw my FD before maturity?
A: Yes, but premature withdrawals may attract penalty charges and lower interest rates.

Q5: What's the minimum investment for HDFC Bank FDs?
A: Typically ₹5,000 for regular FDs, but may vary for special schemes.