Split a corpus across 1, 2, 3, 4 and 5-year FDs. Each year one FD matures — reinvest it as a fresh 5-year FD. After 4 years you have annual liquidity at the highest 5-year rate on the whole corpus.
Rate (% p.a.) for each rung:
Per-rung deposit
₹0
Corpus after horizon
₹0
Total interest earned
₹0
Avg yield
0%
Year
Matures
Rolled at
Corpus
Why ladder
Liquidity: An FD matures every year — predictable cash flow without breaking deposits early.
Rate risk hedged: Annual rollovers benefit from rising rates; you're never fully locked into one rate cycle.
Highest available rate: After year 4 every rung is a 5-year FD at the longest-tenure (usually highest) rate.