HDFC RD Rates Calculator
Calculate your Recurring Deposit maturity and interest earnings
Investment Summary
Understanding HDFC Bank RD Rates
A Recurring Deposit (RD) is a special kind of term deposit offered by HDFC Bank which helps people with regular incomes to deposit a fixed amount every month into their RD account and earn interest at the rate applicable to Fixed Deposits. It is a powerful tool for disciplined savings without the need for a large lump sum investment.
How HDFC RD Interest is Calculated
HDFC Bank calculates interest on Recurring Deposits based on quarterly compounding. This means the interest earned every quarter is added back to your principal, and you earn interest on that interest in the subsequent periods. The formula used is:
M = P × [(1+i)n – 1] / [1 – (1+i)-1/3]
Where:
• P = Monthly Installment
• i = Quarterly Interest Rate (Annual Rate / 400)
• n = Number of months
HDFC RD Interest Rates 2024 (Estimated)
HDFC Bank offers competitive rates that vary based on the tenure of the deposit. Typically, Senior Citizens receive an additional 0.50% interest rate premium.
| Tenure | Regular Rates | Senior Citizen Rates |
|---|---|---|
| 6 Months | 4.50% | 5.00% |
| 12 Months | 6.60% | 7.10% |
| 24 Months | 7.00% | 7.50% |
| 60 Months | 7.00% | 7.50% |
Key Features of HDFC RD
- Minimum Amount: You can start an RD with as little as ₹1,000 (and in multiples of ₹100 thereafter).
- Flexible Tenure: Choose between a minimum of 6 months to a maximum of 120 months (10 years).
- TDS Applicability: Tax Deducted at Source (TDS) is applicable if the total interest earned across all your HDFC bank deposits exceeds ₹40,000 (₹50,000 for senior citizens) in a financial year.
- Premature Withdrawal: HDFC allows early closure of RD, though a penalty of 1% is typically charged on the applicable interest rate.
Calculation Example
If you invest ₹10,000 per month in an HDFC Recurring Deposit for a tenure of 12 months at an interest rate of 6.60%:
- Total Amount Deposited: ₹1,20,000
- Estimated Interest Earned: ₹4,357
- Total Maturity Value: ₹1,24,357