FDs vs Markets: Where Should You Keep Your Short-Term Money?

Not every financial goal should be met through the stock market. Speaking to Business Today, Rachana Ranade, Founder, Rachna Ranade & Associates, explains why fixed deposits (FDs) remain an important part of a balanced portfolio despite criticism in recent years. She says equities and equity mutual funds are best suited for long-term wealth creation, while FDs are ideal for short-term goals where safety and liquidity matter more than returns. She also highlights the ₹5 lakh deposit insurance limit per bank and advises investors not to chase higher interest rates at the cost of safety.