Compare tax-free bonds (like NHAI/REC) against taxable fixed deposits.
For someone in the 30.0% tax bracket, a tax-free yield of 5.00% is functionally equivalent to a taxable investment earning 7.14%. You would need a taxable instrument offering at least 7.14% to beat this tax-free bond.
Tax Equivalent Yield (TEY)
7.14%
To match your 5.00% tax-free bond, a taxable FD must offer at least 7.14% before taxes.
Used by calculators that reference global assumptions
RBI target: 4% · Historical avg: ~6% · Used by calculators that show "Value in Today's Money".
New regime (default from FY 2023-24): lower rates, fewer deductions.
Age doesn’t affect slab rates under the New Regime. Switch to Old Regime to configure.
Tax rules and slab rates are loaded from this assessment year's configuration.