Fixed deposits are useful when you need a known amount on a known date. They are less useful when sold as a complete wealth plan.
Compare three things, not one: the rate, the lock-in, and the tax you actually pay. A slightly lower rate with cleaner liquidity can be the calmer choice if you may need the money early.
A simple check
- Is this money earmarked for a date you can name?
- Would breaking it early cost more than the comfort is worth?
- After tax, does it still beat parking the same amount idle?
FIN PILOT helps you place FDs next to funds and insurance — so cash, growth, and protection each have a job.