Your Comparison
Same amount, same rate — see what changes after tax.
- Since April 2023, debt-fund gains are taxed at your slab — just like FD interest. We compare both AFTER tax.
- An FD has DICGC cover up to ₹5 L per bank; a debt fund carries market, credit and duration risk — different risk, not comparable on return alone.
- A debt fund is taxed only when you redeem; FD interest is taxed every year even if you don’t withdraw it — a real difference this simple compare leaves out.
AI Insights
DhanRadar AITax parity since April 2023 — debt fund gains are now taxed at your income-tax slab, exactly like FD interest. The old long-term indexation benefit is gone, so the tax difference between these two is now zero.
Compounding frequency is the only edge here — the FD compounds quarterly while the debt-fund model uses annual compounding. Over longer horizons that quarterly edge can widen the gap noticeably, even at the same stated rate.
The main question is risk vs guarantee, not tax. An FD locks in the rate and is insured. A debt fund can deliver more — or less — and has no guarantee.
For education only — not investment advice. Returns are your assumption; a debt fund’s value can move and is not guaranteed like an FD.
Related Calculators
Calculations are estimates for illustration only and assume a constant annual return, which real markets do not provide. DhanRadar is a research & analytics platform, not an investment advisor. Mutual fund investments are subject to market risks.