1. What is HDFC Bank Saving Account Interest?

HDFC Bank saving account interest is the return earned on the average monthly balance maintained in the account. The interest is calculated monthly and credited to the account quarterly, based on the prevailing annual interest rate.

2. How Does the Calculator Work?

The calculator uses the interest formula:

Where:

• \( \text{average balance} \) — Monthly average balance (INR)
• \( r \) — Annual interest rate (percentage)

Explanation: The formula calculates the monthly interest by converting the annual rate to a monthly rate and applying it to the average balance.

3. Importance of Interest Calculation

Details: Calculating interest helps account holders understand their earnings, plan finances, and compare returns across different saving instruments or banks.

4. Using the Calculator

Tips: Enter the monthly average balance in INR and the annual interest rate in percentage. Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: How often is interest credited in HDFC saving accounts?
A: Interest is calculated monthly but credited to the account on a quarterly basis.

Q2: Is the interest rate fixed or variable?
A: Interest rates on saving accounts are variable and subject to change based on RBI policies and bank decisions.

Q3: Are there different interest rates for different balance slabs?
A: Yes, HDFC Bank may offer different interest rates for different balance ranges. Check the latest rates on their official website.

Q4: Is the interest earned taxable?
A: Yes, interest earned from saving accounts is taxable under the Income Tax Act, subject to applicable deductions and exemptions.

Q5: How is the average monthly balance calculated?
A: The average monthly balance is calculated by summing up the closing balance of each day and dividing by the number of days in the month.