Is investment in Fixed Deposit is good option in India

I am from India and trying to know about Fixed Deposit and Fixed Deposit Interest Rates for different banks.

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Please note this is my personal opinion. 

Whichever way you look at fixed deposit in India, the interest rates vary anywhere between 8 to 10% per year. 

So on one hand FD yeilds - lets say 8.5% while on the other had you have an inflation of 8.28% (CPI inflation for May 2014) eating away your FD return. Which means you make net net 0.2%!! If you take the cost of opportunity, you are actually losing money by investing in FD!! 

At a time when equities are so attractive, I don't think it would be wise in invest in FDs. 


Its a good idea to park some of the funds into FDs. But to beat the inflation one also has to invest in other assets like equity. Though FDs are comparatively less risky, they are not completely risk free. Since you are completely new to the jungle, wouldn’t advice you to directly invest in equity but instead take the mutual fund route.

Talk to some good financial advisor who can do your risk profile and guide you for proper asset allocation.

Regarding FDs, you can find current interest rates on the following links. Each bank also displays the same on their websites. In addition to banks, there are some very good company FDs which also you can look at.


FDs are the way to loose money slowly. Banks make money out of your FDs not you and me.

If you are looking for something very secure the best option is Debt funds and they are tax free.


I think there is an option for Tax Free FD also we one can try. Also i found a good article on Tax Free Fixed Deposit@