Advisory Tools
Home Loan Overdraft (OD) Valuation Tool
Estimate interest savings and payoff timelines when parking surplus funds in a home loan overdraft account.
Client details
Results update as you type.
₹
₹50 L
%
yr
%
On the whole loan
₹
One-time fees
₹
₹10 L
%
FD interest is taxed at slab + 4% cess. Interest saved in the OD isn't taxed.
₹
₹10 L
Of the corpus:
₹
Optional, e.g. salary surplus
yr
%
Full amount stays parked. Presets above fill this in.
Recommendation
Shift to Home Loan OD
Parking ₹10,00,000 for 5 yr leaves the client ₹1,96,801 better off after the OD premium, charges and FD income given up.
Net benefit · 5 yr
+₹1,96,801
vs keeping the FD
- Interest saved
- ₹5.46 L
- On the home loan, tax-free
- Breaks even after
- 5 mo
- When shifting starts to pay off
- Minimum to park
- ₹2.69 L
- To break even over 5 yr
Net benefit over time
Cumulative gain from shifting, month by month. Hover or tap the chart for exact values.
| After | Net benefit |
|---|---|
| 1 yr | +₹18,425 |
| 2 yr | +₹52,630 |
| 3 yr | +₹93,269 |
| 4 yr | +₹1,41,061 |
| 5 yr | +₹1,96,801 |
How the benefit adds up
Over 5 yr, versus keeping the FD and the regular loan.
- Interest saved on home loan+₹5,46,374₹10 L parked on average, netted off the outstanding
- OD premium on the whole loan−₹62,2940.25% extra on ₹50 L
- FD income given up−₹2,77,279At 5.02% after tax, while the money offsets the loan
- Switching charges−₹10,000One-time
Net benefit
+₹1,96,801
FD vs OD at a glance
What changes for the client if they switch.
| Metric | Keep FD | Shift to ODBetter |
|---|---|---|
| Return on parked funds | 7.1% (taxable) | 8.75% (tax-free saving) |
| Effective post-tax return | 5.02% | 8.75% |
| Monthly EMI | ₹43,391 | ₹44,186 |
| Liquidity | Penalty on premature break | Withdraw anytime |
| Position after 5 yr | Baseline | +₹1,96,801 |
Liquidity impact
OD money stays withdrawable anytime, but every rupee taken out stops saving interest.
- Stays parked on average
- ₹10 L
- Nothing withdrawn
- Cost of taking out ₹1 L
- ₹729
- Interest saving lost per month
OD funds can be withdrawn anytime with no penalty. Breaking an FD early usually costs 0.5–1% and resets the rate.