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FD returns are guaranteed. But are they enough?
The rate on the certificate is not what you keep. Tax takes a slice every year, and inflation takes what's left. This shows you what your deposit will actually buy when it matures.
Enter the figure in rupees.
FD interest is added to your income and taxed at your slab every year, whether you withdraw it or not.
Household inflation — school fees, medical, rent — usually runs above the headline number.
What it will actually buy at maturity
The point isn't that FDs are bad
They do one job extremely well: money you may need at short notice, and money you cannot afford to see fall. The problem starts when money meant for a goal fifteen years away is parked in the same place as money meant for next year.