INCOME TAX21 Sept 2026
Saving for emergency fund of ₹10-15 lakh? Here’s how FD laddering can help and whether you should consider it | Mint
If you are parking ₹10-15 lakh as an emergency fund, fixed deposit (FD) laddering may help. Instead of one long deposit, you split the money across FDs with different maturities. RBI held the repo rate at 5.25% in August 2026, but SBI Research expects 25-basis-point hikes in October and December. So keep some money in shorter deposits. Breaking one early can cost a penalty.
Key Statutory Highlights
- FD laddering means splitting a lump sum across several fixed deposits with different maturity periods, instead of locking the whole amount in one long-term deposit.
- The RBI kept the repo rate unchanged at 5.25% in its August 2026 monetary policy committee meeting, while SBI Research expects 25-basis-point hikes in October and December.
- Banks in India usually charge a premature withdrawal penalty of about 0.5% to 1% on the applicable interest rate when an FD is broken before maturity.
Actionable Advice for Taxpayers / Founders:Consider spreading your emergency fund across a mix of 1-year, 2-year and 3-year fixed deposits so a portion becomes available at regular intervals, and check current FD rates with your bank before you lock in your money.
Statutory Disclaimer: TaxQue Shorts are AI-assisted editorial briefs for compliance awareness. This brief has not passed every source check; confirm the original notification before acting. This does not constitute formal legal or CA counsel.
TaxQue News Desk
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