FD vs debt fund calculator
Enter an amount, the years and your slab. See what each leaves you after tax.
- Post-2023 tax rules
- Your slab
- Free, no sign-up
Tax changes the answer
Your slab, the holding period and the regime all change which option wins. Our experts plan it for your salary.
Questions people often ask
How are equity fund gains taxed?
Over a year: 12.5% above ₹1.25 lakh a year. Under a year: 20%.
How is FD interest taxed?
At your slab rate, every year, even on a cumulative FD.
Same tax, different timing
Deferral is the difference.
- FD: interest taxed every year.
- Debt fund: gain taxed once, when you redeem.
- Deferral lets more money compound.
Last reviewed 9 October 2026. The rules in this calculator come from these official sources.
- Investor education Securities and Exchange Board of India
- Reserve Bank of India: deposits Reserve Bank of India
Common questions
How are debt funds taxed now?
For units bought on or after 1 April 2023, gains are taxed at your slab rate whenever you sell, with no indexation.
Then why consider a debt fund?
Tax is paid only when you redeem, so the full amount keeps compounding. FD interest is taxed every year.
Is a debt fund as safe as an FD?
Not exactly. Debt fund values move with interest rates and credit quality. FDs up to ₹5 lakh are insured.
When does the FD win?
When its rate is clearly higher than the fund's return after expenses, or for short periods.
Are there TDS differences?
Banks deduct TDS on FD interest above the threshold. Debt funds have no TDS for residents on redemption.
