Power of Compounding: How to Maximize The Returns with My Passion Fund

19 May, 2025

Synopsis

• HDFC Bank’s My Passion Fund offers a flexible Recurring Deposit to help you achieve financial goals while leveraging the power of compounding.

• With features like customisable tenures, competitive interest rates and the option to make multiple deposits per month, it encourages consistent savings.

• My Passion Fund can help you pursue personal goals while maximising returns without penalties for missed or premature payments.

Have you ever dreamt of pursuing your passion but felt held back due to financial constraints? HDFC Bank’s My Passion Fund might just be the solution you need. This flexible Recurring Deposit Account helps you achieve your financial goals faster by allowing you to save at your convenience. Let’s break down how it works and how you can maximise your returns through the power of compounding.

The Power of Compounding and Smart Saving with My Passion Fund

Understanding compound interest is crucial for long-term wealth building. Compounding is the process where the interest you earn on your savings starts generating its own interest over time. HDFC Bank’s My Passion Fund helps you take advantage of the power of compound interest through consistent and flexible deposits. You can decide the amount for your goal and set your target date Please note that the minimum tenure is 6 months and minimum target amount being ₹ 6,100.

How to Compound and Maximise Returns with My Passion Fund?

Maximising your returns with My Passion Fund involves adopting a thoughtful savings strategy. Below are actionable steps to get the most out of your investments:

• Set the Target Goal amount: The Goal amount that you wish to receive at the end of the tenure can be selected initially.

• Set the Target date: The time by when the goal amount is needed, can also be selected with minimum tenure being 6 months and thereafter in multiples of 1 month.

• Start Saving Early: The earlier you begin saving, the more time your money gets, to compound. This extended time frame allows your returns to grow exponentially.

• Make Consistent Contributions: Regular monthly instalments ensure that your savings steadily build over time. Automating your contributions helps maintain consistency and reduces the risk of missed payments.

• Utilise Top-Up Deposits: Take advantage of the flexibility to top up your Account up to twice the monthly instalment amount. This feature enables you to boost your savings when you have extra funds available and in case of higher interest rates, the rates are applicable on all the applicable top-ups.

• Reinvest for Maximum Financial Growth: Avoid withdrawing your funds prematurely to allow the power of compounding to work uninterrupted. The longer your money stays invested, the greater potential for returns.

• Personalise Your Savings Goal: Naming your deposit after a specific passion or goal helps keep you motivated and focused on achieving it.
  
  

How to Start a My Passion Fund for Compounding and Maximising Returns?

Here are the steps to start My Passion Fund through HDFC Bank’s NetBanking platform:

• Log into your HDFC Bank NetBanking portal.

• Navigate to the ‘Transact’ section.

• Choose My Passion Fund. Select the fund and name it after your passion.

• Pick the Account for debit.

• Enter your target savings amount.

• Select your preferred tenure and click ‘Calculate’ to see the required monthly contribution (rounding off to nearest ₹100 would be required).

• Check the details and complete the setup.
  
  

Open a My Passion Fund Now to Ease Compounding and Returns

Whether you’re saving for a big purchase, pursuing a passion project, or simply building a financial cushion, My Passion Fund from HDFC Bank offers the flexibility and potential to maximise your returns through compounding vs. simple interest. Open a My Passion Fund today and take control of your financial future.

Frequently Asked Questions

What is the minimum deposit required for My Passion Fund?

The minimum monthly instalment is ₹1,000, with additional top-ups in multiples of ₹100.

Can I change the tenure of My Passion Fund?

Once the tenure is selected, it cannot be changed. However, you can choose a new tenure for future Accounts.

Is there a penalty for premature withdrawal?

There is no penalty for premature liquidation of your My Passion Fund Account.

Can I make multiple deposits in a month?

You can deposit up to three times per month, with a maximum of twice the instalment amount as a top-up.

How is interest calculated on My Passion Fund?

Interest is calculated on a quarterly compounding basis

When is Interest paid on My Passion Fund?

Interest is paid on maturity of My Passion Fund account

*Disclaimer: Terms and conditions apply. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances.