1. What is HDFC Monthly FD?

HDFC Monthly Fixed Deposit is a savings scheme where you deposit a lump sum amount for a fixed period and receive monthly interest payouts. This provides a regular income stream while keeping your principal amount intact.

2. How Does the Calculator Work?

The calculator uses the monthly payout formula:

Where:

• \( P \) — Principal Amount (INR)
• \( r \) — Annual Interest Rate (%)

Explanation: The formula calculates the monthly interest payout by converting the annual interest rate to a monthly rate and applying it to the principal amount.

3. Importance of Monthly FD Calculation

Details: Accurate monthly payout calculation helps in financial planning, ensuring you receive predictable monthly income for expenses while your principal remains secure in the fixed deposit.

4. Using the Calculator

Tips: Enter principal amount in INR and annual interest rate in percentage. Both values must be positive numbers. The calculator will compute your monthly interest payout.

5. Frequently Asked Questions (FAQ)

Q1: What is the minimum deposit for HDFC Monthly FD?
A: The minimum deposit amount varies, but typically starts from ₹5,000 for regular fixed deposits.

Q2: Are monthly FD interest payouts taxable?
A: Yes, interest income from fixed deposits is taxable as per your income tax slab. TDS may be deducted if interest exceeds ₹40,000 (₹50,000 for senior citizens).

Q3: Can I withdraw my FD before maturity?
A: Yes, but premature withdrawal may attract penalty charges and the interest rate may be revised to the applicable rate at the time of withdrawal.

Q4: How is the interest rate determined?
A: Interest rates vary based on deposit tenure, amount, and customer type (senior citizens usually get higher rates). Rates are subject to change as per HDFC Bank's policies.

Q5: Can I get monthly payout for any tenure?
A: Monthly payout option is typically available for longer tenures (usually 6 months and above). Check with HDFC Bank for specific tenure options.