The REAL returns from Fixed Deposits

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

1. Real rate of return given by Fixed Deposits from 2001 to 2017 is ONLY 12% compared to 173% given by Nifty.
2. 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%.
3. 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.