Valuing fixed deposits
A net worth statement is only as honest as its valuations, and a fixed deposit is one of the places households most often get it wrong — usually by carrying the purchase price forward for years. Principal plus interest accrued to date. The maturity value is fixed on the day you open it, which is the entire point of the instrument.
- Liquidity grade
- High
- Time to sell
- Same day
- Revalue every
- Month
how fast it becomes cash
realistically
or when something material changes
The number to write down
Principal plus interest accrued to date. The maturity value is fixed on the day you open it, which is the entire point of the instrument.
What people get wrong
Interest is taxable at your slab rate every year, so a 7% FD in the 30% bracket returns under 5% after tax — often less than inflation. Minimal credit risk at a scheduled bank up to the ₹5 lakh deposit insurance limit; the real risk is inflation quietly outrunning it.
Keep the history, not just the latest figure
A single current value tells you where you stand. A series of valuations tells you whether the asset is doing anything for you. Record the value each time you check it, with the date, and the trend answers questions a snapshot cannot — like whether this holding has actually beaten inflation since you bought it.
Where FamTally comes in
FamTally stores fixed deposits with a purchase value, a valuation history and a liquidity grade, so your net worth reflects today rather than the day you bought. Add a new valuation whenever you get a fresh figure and the trend builds itself. Free to use.
Stop doing this in a spreadsheet
FamTally keeps your loans, income, expenses, assets, insurance and goals in one place, forecasts five years ahead, and answers questions about your own numbers. Free, and built for Indian families.
Start freeQuestions people ask
How do I value a fixed deposit?
Principal plus interest accrued to date. The maturity value is fixed on the day you open it, which is the entire point of the instrument.
How often should I update the value?
Monthly is plenty, and it takes seconds once the holding is recorded.
Should I use the purchase price instead?
No. The purchase price answers a question about the past. A net worth statement is about what you could realise today.