What would be the worth of your Rs 10 Lakh FD in 5 years?

As Indian, savings for the rainy day is in our DNA. Irrespective of the amount, most of us at-least try to save some amount of our monthly salary. Just to give you an idea, the average household savings of India stands at an impressive 25.6% whereas, for US it is 5%.

Once the money is saved, we start planning for our investments and its is seen that most Indians opt for Bank Fixed Deposits.

Bank Fixed Deposits (Also knows an FD’s or Term Deposit) is a financial investment option provided by banks in which the interest rate is guaranteed (until the FD term expires). Hence with fixed deposit, an investor know the exact amount which we would receive when the FD matures(FD time Expires).

The reason for selecting Fixed Deposit for investment is simple, FD’s offer safe & guaranteed – return on investment.

Bank Fixed deposit is certainly a safe investment but is the return on investment good enough Or are we actually losing money by investing in them?

To answer this question, it’s important to understand the impact of inflation on your existing money. You can read our detailed analysis on WPI & CPI Inflation but in a short, it’s important to invest funds in financial instruments which beat inflation.

Use the calculator below to see, if your money is actually growing with Fixed Deposit or should you look for alternative investment avenues.

If you are satisfied with returns then stay invested. If not, we recommend that you move some portion of your savings into the stock market via mutual funds or direct investment.

To decide what percentage of saving allocation should be risky assets like stocks vs Fixed deposits, some people follow “75 –  age = stock market” concept. For example, if you are at 35 years old, you should invest 40% in stocks ( 75 – 35 ) and remaining 60% into a safe asset like Fixed deposit or debt.


Hopefully, you got a good understanding about return on your Fixed deposit and how you should plan your investments. If you have any questions about the functionality of the calculator or otherwise, please leave them in the comments section.