Go back to article

FD → OD → Bond: Two-Option Planner

Compare: Option 1 keep Bond interest as income, use FD interest to repay OD; Option 2 use both FD + Bond to repay. Assumptions are now editable: OD limit % of FD and Drawn % of OD.

Inputs

Editable: OD limit % & Drawn % Interest due first; surplus → principal

Setup Summary

FD

FD Amount
FD Rate
FD Interest / Month

OD & Bond

OD Limit % of FD
OD Limit (₹)
Drawn % of OD
OD Drawn (₹)
Final OD Rate
OD Interest / Month (initial)
Bond Rate
Bond Income / Month

Options Comparison

Option 1 — Keep Bond as Income; Use FD to Repay

Take-home Income / Month
Initial OD Interest / Month
Initial Principal Reduction / Month
Repayment Status
Time to Close OD
Total OD Interest Paid
Cumulative Take-home (while OD alive)
Amortization Preview (First 12 Months)
Month Opening Principal (₹) Interest (₹) Payment from FD (₹) Payment from Bond (₹) Principal Paid (₹) Closing Principal (₹)

Option 2 — Use FD + Bond to Repay

Take-home Income / Month
Initial OD Interest / Month
Initial Principal Reduction / Month
Repayment Status
Time to Close OD
Total OD Interest Paid
Cumulative Take-home (while OD alive)
Amortization Preview (First 12 Months)
Month Opening Principal (₹) Interest (₹) Payment from FD (₹) Payment from Bond (₹) Principal Paid (₹) Closing Principal (₹)

Comparison

Time Saved (Option 2 vs 1)
OD Interest Saved (Option 2 vs 1)
Final OD %
Break-even Bond % vs OD
Bond − OD Spread
Repayability (Opt-1 / Opt-2)
Notes: Simple nominal annual rates; monthly OD accrual; no tax/fees/penalties modeled. Each month, interest due is paid first; any remaining amount reduces principal. Option-1 pays with FD interest only (Bond kept as income). Option-2 uses FD + Bond to repay. OD principal equals the drawn amount (= OD limit × drawn %).