Why do you invest in Fixed Deposits?
“FDs are safe”
“FDs give guaranteed returns”
“Even if bank shuts down, I’ll get back my money”
Now let’s focus on the facts
- Real rate of return given by Fixed Deposits from 2001 to 2017 is ONLY 12% compared to 173% given by Nifty.
- If you are earning more than 5 lakh a year, interest earned on FD will be taxed at 20% and if earning more than 10 lakh, interest earned will be taxed at 30%.
Mutual funds taxed at only 10%. - Whether you have invested 10 lakhs or 50 lakhs in FDs and the bank shuts down, maximum amount you will get back is only 1 lakh.
