Fixed Deposit vs Mutual Fund
Compare the safety, returns, liquidity, and tax treatment of Fixed Deposits and Mutual Funds to decide where your savings belong.
Fixed DepositMutual Fund·fdmutual fundfixed depositsavings
At a Glance
| Criterion | Fixed Deposit | Mutual Fund |
|---|---|---|
| Returns | 6–7.5% (fixed) | 10–14% (market-linked) |
| Risk | Zero — guaranteed by bank | Market risk |
| Liquidity | Penalty on early withdrawal | Most redeemable in 1–3 days |
| Tax efficiency | Taxed at slab rate | LTCG at 12.5% after 1 yr (equity) |
| Inflation beating | Rarely beats inflation | Historically beats inflation |