Reverse FD Ladder
Weight longer tenures when rates look set to fall. Keep a staged maturity path while locking today's better yields.
Design a reverse FD ladder
Put more weight on longer FDs before a rate-cut cycle.
In plain words
If rates drop, rolling yearly FDs renew cheaper. A reverse ladder parks more money in 3 to 5 year FDs now, so more of your corpus keeps the higher rate you lock today.
1. Your plan
Grow capital or hit a target?
2. Outlook and access
How you expect rates to move
Market outlook
Liquidity preference
3. Rate card
Tenor, rate, and weight
1-year FD
2-year FD
3-year FD
5-year FD
Weights update from your outlook and liquidity preference.
4. Projection
After 5 years
Final maturity
₹14,08,297
Started with ₹10,00,000
Pre-tax CAGR
7.09%
Post-tax 7.09%
Weighted rate
7.36%
3.4 yr avg lock
Liquidity score
49
Balanced
Interest locked
₹2,91,659
On first-leg tenors
Edge vs short roll
₹53,145
Vs rolling 1-year FDs
Real value
₹10,52,361
1.03% real return
Post-tax maturity
₹14,08,297
No tax assumed
Strategy takeaway
By year 5, this reverse ladder is expected to capture an extra ₹53,145 versus rolling short-term FDs under your outlook.
Maturity timeline
1Y FD · 10%
₹1,00,000 at 7.00%
₹1.1 L
2Y FD · 20%
₹2,00,000 at 7.20%
₹2.3 L
3Y FD · 30%
₹3,00,000 at 7.40%
₹3.7 L
5Y FD · 40%
₹4,00,000 at 7.50%
₹5.8 L
Strategy benchmarking
5. Advanced
Tax, stress, and fine print
FAQ