Spread a fixed-deposit allocation across staggered tenures so a rung matures at known intervals. Smooths interest-rate cycle risk, preserves partial liquidity, and lets you reinvest at the curve level that's prevailing then — not the one you locked in today.
| Rung | Tenure | Allocation | Rate | Value at maturity |
|---|---|---|---|---|
| #1 | 12 mo | ₹2.00 L | 6.50% | ₹2.13 L |
| #2 | 24 mo | ₹2.00 L | 6.75% | ₹2.29 L |
| #3 | 36 mo | ₹2.00 L | 7.00% | ₹2.46 L |
| #4 | 48 mo | ₹2.00 L | 7.25% | ₹2.67 L |
| #5 | 60 mo | ₹2.00 L | 7.50% | ₹2.90 L |
Indian bank FDs compound quarterly by convention. Maturity value is P × (1 + r/4)4n where P is principal, r is the annual rate, n is years. The cumulative interest is taxed as ordinary income at slab rate. For non-senior depositors, TDS kicks in above ₹40,000 of interest in a year (₹50,000 for seniors).
The rates here are user-input estimates, not live quotes. Comparable 2026 H1 reference: large private banks pay 6.0-6.5% on 6-12 month tenures and 6.75-7.0% on 1-3 year tenures; senior citizens get +50bps. Small-finance banks and select NBFCs offer meaningfully higher rates but with proportionally higher credit risk on amounts above the ₹5 lakh DICGC insurance cap.
Premature withdrawal usually attracts a 1% penalty plus a rate recalculation at the lower applicable tenure rate — material cost on a long-dated rung that's broken early. Full methodology · reviewed January 2026.
Rates shown are user-input estimates. Verify actual rates with the bank before depositing. DICGC insurance covers up to ₹5 lakh per depositor per bank. MintByte is an AMFI-registered mutual fund distributor (ARN-314872); SEBI Registered Investment Adviser and Research Analyst registrations are in process. Not investment advice.