Break FD vs Take Loan
Should you break your FD or borrow? Let the numbers decide.
FD Details
Rate reduction applied by bank on early closure
Loan Details
Tax Bracket
You save ₹1,334 with this option
Breaking your FD saves you ₹1,334 compared to taking a loan.
Cost of breaking FD: ₹67,960 | Cost of loan: ₹69,294
Cost Comparison
Total cost of each option side-by-side
Loan Cost Breakdown
How the loan amount is distributed across principal, interest, and fees
Detailed Comparison
Side-by-side breakdown of both options
| Parameter | Break FD | Take Loan |
|---|---|---|
| Amount Available / Borrowed | ₹5.00 L | ₹5.00 L |
| Interest Lost / Paid | ₹57,960 | ₹59,294 |
| Tax Impact | Tax saved: ₹14,490 | No tax benefit |
| Penalty Cost | ₹10,000 | N/A |
| Processing Fee | N/A | ₹10,000 |
| Total Cost | ₹67,960 | ₹69,294 |
| Monthly Outflow | None | ₹23,304/mo |
| Verdict | Break FD saves ₹1,334 | |
How This Works
This calculator compares the true cost of two ways to get money when you have an existing FD:
The verdict depends on whether the interest you would lose (plus penalty) by breaking the FD is more or less than the loan interest and fees. Lower FD rates and higher loan rates favour breaking the FD; higher FD rates and lower loan rates favour keeping the FD and borrowing.
Calculator results are for illustration purposes only. Actual returns may vary based on market conditions, fund performance, and other factors. Mutual fund investments are subject to market risks. Read all scheme-related documents carefully before investing. Past performance does not guarantee future returns.
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