FD Laddering Planner
FD Ladder Maturity Timeline:
| FD Year | Deposit | Maturity Value |
|---|---|---|
| End of Year 1 | ₹1,00,000 | ₹1,07,397 |
| End of Year 2 | ₹1,00,000 | ₹1,15,341 |
| End of Year 3 | ₹1,00,000 | ₹1,23,872 |
| End of Year 4 | ₹1,00,000 | ₹1,33,035 |
| End of Year 5 | ₹1,00,000 | ₹1,42,875 |
💡 **Rolling Liquidity Plan**: Reinvest each maturing FD into a new 5-Year FD. From Year 1 onward, you will have **₹1,00,000 + interest** maturing every single year, giving you continuous liquidity while retaining high-yield interest rates.
What to do next
Based on your FD Laddering Planner, here are the tools you should try next:
Advertisement
FD Laddering Allocation Strategy
Splits capital into equal FDs of escalating tenures. As each FD matures, it is reinvested into a new 5Y FD, creating rolling liquidity.
Worked Example: Laddering ₹5 Lakhs into 5 tranches at 7% p.a.
FD Laddering: Optimizing yields while preserving constant liquidity
Meera had ₹5 Lakhs to invest in FDs. Locking it all in a 5-year FD would yield high interest but leave her with no cash in emergencies. She decided to use the FD Laddering strategy.
She split the ₹5 Lakhs into 5 separate FDs of ₹1 Lakh each, maturing in 1, 2, 3, 4, and 5 years. At the end of Year 1, the first FD matured. She reinvested that ₹1 Lakh into a new 5-year FD.
FD Laddering involves spreading deposits across multiple maturities, ensuring a portion of your funds matures every year for liquidity, while locking in high rates.
FD laddering protects against interest rate volatility. If rates rise, you can reinvest maturing tranches at higher yields.
Frequently Asked Questions
What is FD laddering?
FD laddering is a strategy of splitting your total investment across multiple fixed deposits with different maturity terms (e.g., 1 to 5 years).
What is the benefit of FD laddering?
It ensures a constant flow of liquidity as one FD matures every year, while allowing you to earn high interest rates of long-term deposits.
Does laddering protect against rate changes?
Yes. If interest rates rise, you can roll over your yearly maturing deposits into higher yield FDs, avoiding locking all cash at low rates.
Get Smarter With Money Every Week
Join 10,000+ readers. One actionable money tip delivered free every Sunday.
Was this calculator helpful?
Advertisement