Calculators / FD vs Debt Fund

FD vs Debt Fund, after tax

Since April 2023, debt fund gains are taxed at your slab, just like FD interest. The difference left is when you pay the tax, and that timing still compounds.

Compounded quarterly
After expense ratio
FD, post-tax
—
Debt fund, post-tax
—
Difference
—
FDDebt fund
Tax paid
Post-tax annual return
FD interest is taxed every year as it accrues, even if you don't withdraw it. Debt fund gains are taxed only when you redeem. Assumes the same slab throughout and ignores exit loads and TDS.