Credit interest capitalized in HDFC salary account refers to the process of adding accrued interest to the principal balance of a credit account. In the case of HDFC salary accounts, interest is calculated on a daily basis as simple interest and charged only on the amount drawn and the period for which it is utilized. Interest accrued is auto-debited from the salary account at the last day of the month. If there is insufficient balance, the debited interest must be serviced by salary credit or any other credit within 30 days of debit.

In summary, credit interest capitalized in HDFC salary account refers to the process of adding accrued interest to the principal balance of a credit account, and in the case of HDFC salary accounts, interest is calculated on a daily basis as simple interest and charged only on the amount drawn and the period for which it is utilized.