Wealth Destruction Warning

Post-Tax FD Return Calculator

Fixed Deposits are not risk-free. Calculate your true "Real Return" after the government takes its tax and inflation destroys your purchasing power.

Deposit & Macro Variables

FD interest is taxed at your slab rate.

Historical average in India is ~6%.

The Brutal Reality

True Real Return

-1.10%

You are losing purchasing power.

Gross Interest+₹35,000
Income Tax Deducted-₹10,500
Post-Tax Interest₹24,500 (4.90%)

Why FDs destroy wealth for high-earners

  • The Taxation Trap: Unlike Equity Mutual Funds (taxed at 12.5% after 1 year), FD interest is simply added to your income and taxed at your highest slab rate. If you earn over ₹15L, the government immediately takes 30% of your FD profit.
  • The Inflation Trap: Inflation is the invisible tax. If inflation is 6%, it means the cost of cars, food, and rent went up by 6%. If your post-tax FD return is only 4.9%, your money is actually shrinking in value. You are literally paying the bank to lose your purchasing power.
  • The Solution: For long-term wealth creation, high-earners in the 30% slab must avoid FDs. Use Debt Mutual Funds, Tax-Free Bonds, or Equity Mutual Funds to ensure your money grows faster than inflation and taxation. FDs should only be used for short-term emergency funds.