Compare the official interest rates dynamically between MF and FD to analyze the monthly EMI and total interest differences.
Compare the official interest rates dynamically between MF and FD to analyze the monthly EMI and total interest differences.
Understanding the Tax Logic
This tool applies the current Indian tax laws to both asset classes.
- Fixed Deposits: Interest is added to your slab and compounded annually.
- Equity Mutual Funds: 12.5% Long Term Capital Gains (LTCG) tax applied on profits.
- Debt Mutual Funds: Gains are taxed as per your income tax slab (holding period irrelevant since April 2023).
- Result: Shows exactly how much more (or less) you take home after the taxman's cut.
Scenario: The Tax-Efficiency Gap
Comparing a ₹50L investment over {YEARS} years in an FD vs an Equity Mutual Fund:
• FD Maturity: ₹1.41 L (at Slab tax)
• MF Maturity: {MF_RESULT} (at 12.5% LTCG)
• Outcome: The Mutual Fund delivers a significantly higher in-hand profit due to superior tax treatment on long-term capital gains.
Investment: ₹50L
FD Post-Tax: ₹1.41 L
MF Post-Tax: {MF_RESULT}
MF Advantage: Higher Yield
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Frequently Asked Questions
Is FD interest taxable every year?
Yes, FD interest is taxable on an 'Accrual' basis. This means you owe tax on the interest earned every year, even if you don't withdraw it. This reduces the compounding effect compared to MFs where tax is only paid at the time of redemption.
What is the new LTCG rate for Equity Mutual Funds?
As per the latest Budget, the Long Term Capital Gains (LTCG) tax on equity mutual funds has been increased to 12.5%.
What is the maturity value of ₹NaN Mf Vs Fd for undefined Years?
For a Mf Vs Fd of ₹NaN over a tenure of undefined Years at an expected rate of undefined%, the estimated maturity value is . This includes a total investment of ₹NaN and earned returns of the calculated growth.
Which bank offers the highest FD rate in India 2026?
As of early 2026, Small Finance Banks (like AU, Equitas, and Unity) continue to offer the highest FD rates ranging from 8.0% to 9.25%. Major private banks (HDFC, ICICI, Kotak) offer 7.0% to 7.75%, while SBI and other PSU banks range between 6.8% and 7.3%. For the highest safety, sticking to 'Too Big To Fail' banks (SBI, HDFC, ICICI) is recommended for amounts significantly exceeding the ₹5 lakh insurance limit.
What is the latest bank FD interest rate for 2026?
As of early 2026, major Indian banks like SBI, HDFC, and ICICI are offering FD rates between 6.5% and 7.5% for regular citizens, with senior citizens getting an additional 0.50%. Smaller private banks and small finance banks may offer higher rates up to 8.5%.
How much will my FD of ₹1L be worth in 5 years?
At an interest rate of 7%, your Fixed Deposit (FD) of ₹1L will grow to approximately ₹1.41 L over a tenure of 5 years. This includes the principal and the quarterly compounded interest.
Which bank offers the highest FD rate in India (May 2026)?
Currently, Small Finance Banks (SFBs) like Unity, Equitas, and AU Small Finance Bank typically offer the highest rates, often crossing 8%. Among major banks, HDFC and ICICI often lead for specific tenures like 15-18 months.
Is my bank FD safe? What is the DICGC insurance limit?
Yes, bank FDs are extremely safe. Every bank in India is insured by the Deposit Insurance and Credit Guarantee Corporation (DICGC). In the rare event of a bank failure, your deposits (principal + interest) are insured up to ₹5 Lakh per bank.
How is FD interest calculated? Quarterly vs Monthly payout?
Most banks use quarterly compounding to calculate FD interest. If you choose a 'Cumulative' FD, the interest is reinvested every quarter. If you choose 'Non-Cumulative', you can receive payouts monthly or quarterly, but the total interest earned will be slightly lower.
Can I save tax with a Fixed Deposit? (Section 80C rules)
Yes, you can invest in a 'Tax-Saving FD' with a mandatory 5-year lock-in period. These qualify for a deduction up to ₹1.5 Lakh under Section 80C. However, interest earned on these FDs is still taxable.
⚠️ Disclaimer
The figures provided by this calculator are estimates based on the inputs you provide and standard financial formulas. STOCKCALC.IN does not offer investment advice. Please consult a qualified financial advisor before making any investment decisions.