Bond vs FD calculator
Put the same amount into a bond and a bank fixed deposit for the same number of years, then compare what each one actually leaves you after tax. Set your numbers below. When the FD wins, this page says so.
Rupee gap after tax, at maturity
Rupee gap after tax, 37,235.
The bond leaves you ₹37,235 more than the FD after tax, on ₹1,00,000 over 5 years.
The FD wins here. At this bond yield, the bank deposit leaves you with more money after tax. Raise the bond YTM, or look at the bonds listed below.
Post-tax values assume the same slab applies to both instruments every year, with that year's return compounding forward at the post-tax rate.
Live bonds in this yield band
Showing the 4 bonds we track closest to the 14.5% YTM you entered, yielding 14.05% to 14.5%. Nothing below your 6.5% FD rate.
No live bond currently yields above this FD rate. Try lowering the FD rate or check the full screener.
See the full highest-yield listHow this is calculated
Both instruments grow the same way: this year's return compounds into next year's base. The FD compounds annually at its quoted rate. The bond assumes every coupon is reinvested at the same YTM it started at, rather than spent.
FD maturity = amount x (1 + FD rate / 100) ^ years
Bond maturity = amount x (1 + YTM / 100) ^ years
Post-tax rate = rate x (1 - slab / 100), applied to each instrument's own rate
Rupee gap = bond's post-tax maturity - FD's post-tax maturity
The gap can be negative. When the FD rate you entered beats the bond's after-tax return, this calculator reports the FD ahead, in rupees, not just in words.
- The FD compounds annually. A real FD that compounds quarterly or monthly ends up slightly higher than this page shows for the same quoted rate. Check the exact figure on the FD calculator.
- The bond assumes every coupon is reinvested at the original YTM. A bond whose coupons are spent, not reinvested, or reinvested at a lower rate later, will not compound this way.
- Tax is applied at your slab, on both instruments, every year, so only the post-tax return compounds forward. That matches how interest is actually taxed, as it accrues rather than at maturity, and the FD calculator on this site uses the same model. Surcharge and the 4% health and education cess are not applied.
- TDS timing, exit load, a change in market yields before maturity, and the risk of the bond issuer defaulting are not modelled.
Frequently asked questions
Is comparing a bond's YTM to an FD's interest rate fair?
Broadly yes. Both are taxed as income at your slab, so putting them on the same after-tax basis is the right comparison. Where they differ is risk: a bank FD up to five lakh rupees per bank is covered by DICGC deposit insurance, while a bond carries the credit risk of its issuer and no insurance. A higher bond yield is partly compensation for that extra risk, not a free lunch.
What happens if the bond I enter yields less than the FD?
Then the FD wins, and this calculator says so. The rupee gap turns in the FD's favour and the page states plainly that the bank deposit leaves you with more money after tax at that yield. There is no reason to prefer a bond just because it is a bond, so check the number for the specific yield you were quoted.
Why compare maturity values in rupees instead of comparing yields directly?
Because the yield alone hides two things: the tax difference and the effect of compounding over your exact tenure. Two instruments with a two percentage point yield gap can end up a few thousand rupees or a few lakh rupees apart depending on the amount and the years involved, so the rupee number at maturity is the one that actually matters to your decision.
Does this account for deposit insurance or credit rating?
No, it only compares the money. An FD is protected up to five lakh rupees per depositor per bank under DICGC insurance. A bond is not insured, and its safety depends on the issuer's credit rating, shown against every bond on this site. A bigger rupee gap in the bond's favour is not a reason to skip checking that rating.
Results are estimates for guidance only, not investment or tax advice. Yields, FD rates and minimum investments change daily, and your actual tax depends on your full income, surcharge and cess. Verify every number on the platform or with your bank before you invest.