Fixed Income Strategy

FD Laddering Strategy Calculator

Don't lock all your money in one Fixed Deposit. Use laddering to get higher interest rates while maintaining annual liquidity.

Investment Plan
5

Split into 5 separate FDs.

Your FD Ladder Setup
Tenure
Deposit
Est. Rate
Maturity Value
1 Year
₹1,00,000
~6.5%
₹1,06,500
2 Year
₹1,00,000
~7%
₹1,14,490
3 Year
₹1,00,000
~7.2%
₹1,23,193
4 Year
₹1,00,000
~7.5%
₹1,33,547
5 Year
₹1,00,000
~7.5%
₹1,43,563
Strategy Overview

Total Maturity Value

₹6,21,292

Initial Investment₹5,00,000
Total Interest Earned+₹1,21,292
Annual Liquidity₹1,00,000

One FD will mature every single year, giving you constant access to cash without penalties.

How FD Laddering Works

Instead of putting your entire ₹5 Lakhs into a single 5-year Fixed Deposit, you split it into five equal FDs of ₹1 Lakh each. You book the first one for 1 year, the second for 2 years, the third for 3 years, and so on.

  • Zero Penalties: Because one FD matures every year, you always have access to cash for emergencies without ever paying a premature withdrawal penalty.
  • Beating Interest Rate Cycles: When your 1-year FD matures, you reinvest it into a new 5-year FD. Over time, all your money ends up earning the highest 5-year interest rate, but you still have liquidity every year!