Salary Plus Interest Calculation Online

  • Interest accrues on a daily basis as simple interest and is only applied to the amount withdrawn and the duration of its utilisation.

  • The accrued interest is automatically debited from the Salary Account on the last day of each month.

  • If there are insufficient funds, the debited interest must be covered by a salary credit or any other credit within 30 days of the debit.

  • Here's an example of interest calculation:

  • Suppose a customer has ₹5,000 in their Salary Account and withdraws a cheque for ₹10,000. Now, ₹5,000 will be deducted from the Overdraft (OD) limit, and interest charges will commence from the withdrawal date.

  • If the customer replenishes the Salary Account with ₹10,000 after 5 days, ₹5,000 will be transferred to the OD account to settle the dues, leaving ₹5,000 in the Salary Account.

  • The interest charged can be calculated using the formula: 

  • Interest Charged = 5,000*(Interest Rate/100)*(5/365).

Day Narration Debit Credit Bank Balance Smart Draft Limit
        5,000 25,000
Day 1 Cheque drawn 10,000   -5,000 20,000
Day 2       -5,000 20,000
Day 3       -5,000 20,000
Day 4       -5,000 20,000
Day 5       -5,000 20,000
Day 6 Transfer from other account   10,000 5,000 25,000
  Interest charged for 5 days only ₹10.27 5,000 (15%/100) (5/365)    

 

Click here to read more about the HDFC Bank Salary Plus

 

Disclaimer: Terms and conditions apply. Salary Plus approvals are at the sole discretion of HDFC Bank Limited and are subject to documentation and verification as per the Bank's requirement. Interest rates are subject to change. Please check with your RM or closest bank branch for current interest rates.

Frequently Answered Questions

The interest on Overdraft is calculated using the formula: 

Interest Charged = 5,000 *(Interest Rate/100) *(5/365)

The interest rate for Salary Overdraft ranges from 15% to 18% per annum. The minimum amount offered is ₹25,000, and the maximum is ₹1.25 lakh.

HDFC Bank provides a Bank Overdraft facility to corporate Salary Account holders, allowing them to obtain an Overdraft of up to three times their salary.

HDFC Bank calculates interest on overdraft in the Salary Plus account as simple interest, based on the exact number of days the amount is utilised and only on the amount drawn. The interest begins accruing from the date of withdrawal and is calculated daily until the overdraft is settled.

The interest accrued on overdraft in the HDFC Bank Salary Plus account is automatically debited from your salary account on the last day of every month. This auto-debit process ensures that the dues are cleared monthly, subject to a sufficient balance being available in the account.

If your HDFC Bank Salary Plus account does not have a sufficient balance at the time of interest debit, you must service the debited interest amount within 30 days. This can be done either through salary credit or by transferring funds from any other account to settle the outstanding interest.

In HDFC Bank Salary Plus, when you withdraw ₹10,000 with only ₹5,000 in balance, ₹5,000 is automatically swept from your overdraft. When you later credit ₹10,000, ₹5,000 is swept back into overdraft repayment, and the remaining ₹5,000 stays in your salary account as available balance.

If you withdraw ₹5,000 from your HDFC Bank Salary Plus overdraft for 5 days at an interest rate of 15%, the interest is calculated as ₹5,000 × (15/100) × (5/365), which results in ₹10.27. This interest is only charged for the duration the overdraft is used.

In the HDFC Bank Salary Plus account, interest is charged only for the exact period the overdraft amount is utilised. For instance, if the overdraft is used for 5 days, interest will be calculated specifically for those 5 days, not for the full month or any extended duration.

In HDFC Bank Salary Plus, the overdraft usage and remaining limit are reflected in the SmartDraft Limit field. For example, if your original limit is ₹25,000 and you use ₹5,000, the SmartDraft balance shown will be ₹20,000 until the overdraft is repaid, after which it is restored.