HDFC Bank RD Maturity Calculator
Estimate your savings and interest with HDFC Bank Recurring Deposits
How the HDFC Bank RD Rates Calculator Works
A Recurring Deposit (RD) is one of the most popular investment tools offered by HDFC Bank. It allows individuals to build their savings through regular monthly deposits over a fixed period. Unlike a Fixed Deposit (FD) where you invest a lump sum, an RD is ideal for salaried individuals who want to save a portion of their income every month.
HDFC Bank calculates RD interest using quarterly compounding. This means the interest is calculated every quarter on the cumulative balance. The formula used is:
M = P × [(1+i)^n – 1] / [1 – (1+i)^(-1/3)]
- M: Maturity Value
- P: Monthly Installment
- i: Rate of Interest / 400
- n: Number of Quarters
HDFC RD Interest Rates 2024
Interest rates for HDFC Bank RDs generally range from 4.50% to 7.25% per annum for the general public, with an additional 0.50% premium for Senior Citizens. The rates depend on the chosen tenure, which can range from a minimum of 6 months to a maximum of 10 years (120 months).
Realistic Calculation Example
Let's say you want to save for a vacation and decide to open an HDFC RD:
- Monthly Deposit: ₹10,000
- Tenure: 12 Months (1 Year)
- Interest Rate: 7.00% p.a.
Using the calculator, your Total Investment would be ₹1,20,000. The Interest Earned would be approximately ₹4,614, making your total Maturity Amount ₹1,24,614.
Benefits of Choosing HDFC Recurring Deposit
1. Low Minimum Investment: You can start an RD with as little as ₹1,000 per month (and in multiples of ₹100 thereafter).
2. Flexible Tenure: Choose any duration between 6 months and 10 years to suit your financial goals.
3. Safety: HDFC Bank is a leading private sector bank, providing high capital security for your savings.
4. Loan Facility: You can often avail of a loan or overdraft against your RD balance up to 90% of the deposit amount.
TDS on HDFC RD
It is important to note that interest earned on Recurring Deposits is subject to Tax Deducted at Source (TDS). If the total interest earned across all your deposits in the bank exceeds ₹40,000 (₹50,000 for senior citizens) in a financial year, TDS will be applicable. You can submit Form 15G or 15H if your total income is below the taxable limit.