Real Returns in Fixed Deposits (FDs)

Equities help beat inflation and give higher returns over the long term.

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The graph illustrates how much real returns you can get by putting your money in FDs.

Assuming a tax bracket of 30.9% and a FD Rate of 7.5%

Even though FDs offer guaranteed returns, after deduction of inflation and tax, the real returns amount to hardly 0.45% of your principal.

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