IPO Opportunity Cost Calculator

Compare keeping your IPO money in a savings account against parking it in an FD and funding applications with an overdraft against it.

Rates & Usage

Effective OD Rate (FD rate + spread)8.1%

IPO Application Amounts

The amount you need available for each investor category. Each FD is sized so that its 90% overdraft limit covers the application in full.

Needs an FD of ₹16,667
Needs an FD of ₹2,33,333
Needs an FD of ₹11,22,222
Savings route parks

Both routes commit the identical amount, so only the rates and the overdraft cost decide the winner.

Break-even OD Usage
230
Days

Draw the overdraft for fewer than 230 days a year and the FD route beats the savings account. Beyond that, OD interest eats more than the extra FD yield. The break-even day is the same for every application size.

Savings account wins at 365 days of usage
Retail
₹15,000

IPO application amount

Savings Route
Capital parked₹16,667
Interest earned in a year₹417
FD + OD Route
FD principal required₹16,667
OD drawn for the application₹15,000
FD interest (full year)₹1,183
OD interest for 365 days−₹1,215
Net after OD interest-₹32
Effective yield on FD principal-0.19%
Savings ahead by
₹448
Covering the full ₹15,000 from the overdraft needs an FD of ₹16,667 — ₹1,667 more than the application itself.
sHNI
₹2,10,000

IPO application amount

Savings Route
Capital parked₹2,33,333
Interest earned in a year₹5,833
FD + OD Route
FD principal required₹2,33,333
OD drawn for the application₹2,10,000
FD interest (full year)₹16,567
OD interest for 365 days−₹17,010
Net after OD interest-₹443
Effective yield on FD principal-0.19%
Savings ahead by
₹6,277
Covering the full ₹2,10,000 from the overdraft needs an FD of ₹2,33,333 — ₹23,333 more than the application itself.
bHNI
₹10,10,000

IPO application amount

Savings Route
Capital parked₹11,22,222
Interest earned in a year₹28,056
FD + OD Route
FD principal required₹11,22,222
OD drawn for the application₹10,10,000
FD interest (full year)₹79,678
OD interest for 365 days−₹81,810
Net after OD interest-₹2,132
Effective yield on FD principal-0.19%
Savings ahead by
₹30,188
Covering the full ₹10,10,000 from the overdraft needs an FD of ₹11,22,222 — ₹1,12,222 more than the application itself.

Break-even Ladder

How much the FD + OD route gains or loses against savings, by the number of days the OD stays drawn.

OD DaysRetailsHNIbHNI
0 +₹767+₹10,733+₹51,622
30 +₹667+₹9,335+₹44,898
60 +₹567+₹7,937+₹38,174
90 +₹467+₹6,539+₹31,450
120 +₹367+₹5,141+₹24,726
150 +₹267+₹3,743+₹18,002
180 +₹167+₹2,345+₹11,278
210 +₹68+₹947+₹4,553
230 Break-even+₹1+₹15+₹71
240 −₹32−₹451−₹2,171
270 −₹132−₹1,849−₹8,895
300 −₹232−₹3,247−₹15,619
330 −₹332−₹4,646−₹22,343
360 −₹432−₹6,044−₹29,067
365 −₹448−₹6,277−₹30,188

Both routes use simple interest over a 365-day year and assume the FD is never broken. ASBA-blocked funds keep earning savings interest, so the savings route is credited for the full year. OD interest is charged only for the days the overdraft is actually drawn. Taxes, TDS and any OD processing charges are not included.