Fixed Deposits and gold are two of the most trusted savings instruments in India. Both have their place — but they serve very different purposes.

Fixed Deposit: The Basics

An FD is a deposit with a bank that earns a predetermined interest rate for a fixed tenure.

  • **Returns:** 6.5–7.5% p.a. (varies by bank and tenure)
  • **Risk:** Very low — deposits up to ₹5 lakh are insured by DICGC
  • **Liquidity:** Can be broken early, usually with a penalty
  • **Tax:** Interest is fully taxable as income

    • Gold: The Basics

    Gold is a commodity whose price is determined by global markets.

  • **Returns:** ~11% CAGR over the past 20 years in INR terms
  • **Risk:** Price volatility — can go down in the short term
  • **Liquidity:** Digital gold can be sold instantly
  • **Tax:** Taxed as capital gains (LTCG after 3 years)

    • When to Choose FD

    Choose an FD when you need guaranteed returns, your goal is within 1–2 years, or you're extremely risk-averse.

    When to Choose Gold

    Choose gold when you want inflation-beating returns over 3+ years, want to hedge against currency weakness, or value liquidity without penalty.

    The Ideal Strategy: Both

    Most financial planners recommend a combination — FDs for short-term certainty, and gold for medium-to-long term wealth creation. With Sana Gold, you can start building your gold portfolio alongside your FDs with as little as ₹10 a day.