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Saving for emergency fund of ₹10-15 lakh? Here’s how FD laddering can help and whether you should consider it
Mint 1 hr ago·21 Sept 2026, 5:18 am
Fixed Deposit laddering is a strategy where you divide your emergency savings into parts and invest them in FDs with staggered maturity dates. Instead of putting all your money into a single deposit, you might invest ₹3 lakh in a one-year FD, another ₹3 lakh in a two-year FD, and so on. This creates a ladder where portions of your capital become available at regular intervals, rather than waiting for a single large sum to mature.
This approach helps manage interest rate risks and liquidity. If interest rates rise, you can reinvest the matured amount at the higher rate. If rates fall, you still have other FDs paying higher rates. For investors saving for a ₹10-15 lakh emergency fund, this method ensures you have access to cash regularly without locking up all your money at once.
Moving forward, monitor your bank's interest rate trends and consider reviewing your ladder annually. If you prefer guaranteed returns and liquidity, this strategy can be a solid choice. However, if you are comfortable with market-linked instruments, you might explore other options that could offer higher returns.
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