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FD vs Debt Fund Calculator
Result
Chart
Show formula & working
FD: A × (1 + r × (1 − tax))t — tax every year · Debt fund: A × (1 + g)t − tax × gain — tax at redemption
Details
How this works
Both are taxed at your slab rate, but an FD is taxed every year while a debt fund is taxed only when you redeem. Deferring tax lets the full amount compound.
Debt funds carry interest-rate and credit risk; FDs from banks are covered by deposit insurance up to a limit.
Frequently asked questions
Do debt funds still get indexation?
Not for investments made on or after 1 April 2023 under the current rules — gains are taxed at slab rates. This will be re-checked with the tax rules.
Which is safer?
Bank FDs, within the deposit insurance limit, carry less risk than debt funds.