Government Bonds vs FD — which safe option pays more?
Both are considered low-risk, but government bonds and bank FDs differ in tenure options, liquidity, and how interest is taxed. Compare both on the same amount and horizon.
Government Bonds vs FD Calculator — 7-year comparison
Opens Compare Lab pre-loaded with both, in your own currency — adjust any input and the chart updates instantly.
Compare now →Debt issued by the government, paying a fixed coupon over a set tenure, backed by sovereign credit.
Best for: The safest portion of a fixed-income allocation, especially for capital you want protected above all else.
A lump sum deposited with a bank for a fixed tenure at a fixed, fixed interest rate.
Best for: Capital you can't afford to risk — an emergency fund, or a short-term goal within a couple of years.
Are government bonds safer than FDs?
Both are considered low-risk. Government bonds carry sovereign backing; bank FDs in India are insured only up to a limit (₹5 lakh per depositor per bank under DICGC) — worth checking if your FD amount exceeds that.
Where do these numbers actually come from?
The same calculation engine that powers our standalone calculators and Compare Lab — nothing here is a separate or simplified estimate. Every assumption (rate, tenure, tax) is visible and adjustable once you open the comparison with your own numbers.