Big Questions

Should you invest in FDs for regular income?

Understand the ideal plan to derive a regular income from your investments

Should you invest in FDs for regular income?

Fixed deposits or FDs have been a staple investment avenue for Indians as they provide a guaranteed income. But not many understand that in the long run, the returns on FDs are not meaningful because they are unable to beat inflation. FDs are not tax efficient because the interest earned is taxable at your slab rate and the tax liability accrues even if you do not redeem the same. So clearly, you need to look beyond FDs to identify better investing avenues.

This article was originally published on August 11, 2022.


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