Fixed Deposits

Are you wondering, can you lose money in fixed deposit? Fixed deposits (FDs) are considered safe, but due to inflation and taxes, your real return may be lower. For instance, the FD interest rate is 7% pre-tax, but the post-tax return is only around 5.5%. If your personal inflation is 10%, then 10% – 5.5% = 4.5% negative real return. This is a drawback! And how many fixed deposits can I have? There’s no limit; you can open as many FDs as you want, depending on your bank. For safe investment options and high-return investments, consult OptiFin Advisors to choose the best investment plans for your goals.

Negative Point for FD:

FD interest rate 7% pre-tax
Post-tax return 5.5%
Personal inflation 10%
10% – 5.5% = 4.5% negative real return