Think your money’s safe in FDs? This advisor says you’re quietly getting poorer
“If your FD earns 7% and inflation runs at 6%, your real return is barely 1%,” she writes. For those in the 30% tax bracket, the post-tax return falls to just 4.9%—well below rising living costs. “You’re getting poorer slowly, while feeling safe.”
- Oct 25, 2025,
- Updated Oct 25, 2025 10:18 AM IST
Indians park over 60% of their household savings in fixed deposits—but are FDs quietly eroding their wealth? Wealth manager Khushi Mistry thinks so, and her viral LinkedIn post is sparking uncomfortable questions.
In a sharply worded breakdown, Mistry challenges India’s love affair with fixed deposits (FDs), calling them “the biggest wealth trap in disguise.” She argues that while FDs feel safe, they often deliver negative real returns once inflation and taxes are accounted for.
“If your FD earns 7% and inflation runs at 6%, your real return is barely 1%,” she writes. For those in the 30% tax bracket, the post-tax return falls to just 4.9%—well below rising living costs. “You’re getting poorer slowly, while feeling safe.”
Mistry backs her argument with hard numbers. ₹10 lakh invested in FDs in 2010 would be worth ₹20 lakh today. But in the same period, gold would’ve returned ₹40 lakh, the Nifty 50 over ₹50 lakh, and real estate ₹30–50 lakh. “That’s not volatility—that’s the price of playing it too safe,” she notes.
The illusion of liquidity is another trap. With early withdrawal penalties and outdated rates, FDs can be both inflexible and underwhelming. And while many assume FDs are fully insured, only ₹5 lakh per bank per depositor is actually protected by DICGC. Corporate FDs offer zero insurance.
“FDs aren’t bad—they’re just overused,” Mistry clarifies. She supports using them for emergency funds, short-term goals, or for seniors seeking capital stability. But for long-term wealth building? “FDs quietly fail you.”
“The biggest financial risk today isn’t market volatility—it’s the illusion of safety,” she writes.
Indians park over 60% of their household savings in fixed deposits—but are FDs quietly eroding their wealth? Wealth manager Khushi Mistry thinks so, and her viral LinkedIn post is sparking uncomfortable questions.
In a sharply worded breakdown, Mistry challenges India’s love affair with fixed deposits (FDs), calling them “the biggest wealth trap in disguise.” She argues that while FDs feel safe, they often deliver negative real returns once inflation and taxes are accounted for.
“If your FD earns 7% and inflation runs at 6%, your real return is barely 1%,” she writes. For those in the 30% tax bracket, the post-tax return falls to just 4.9%—well below rising living costs. “You’re getting poorer slowly, while feeling safe.”
Mistry backs her argument with hard numbers. ₹10 lakh invested in FDs in 2010 would be worth ₹20 lakh today. But in the same period, gold would’ve returned ₹40 lakh, the Nifty 50 over ₹50 lakh, and real estate ₹30–50 lakh. “That’s not volatility—that’s the price of playing it too safe,” she notes.
The illusion of liquidity is another trap. With early withdrawal penalties and outdated rates, FDs can be both inflexible and underwhelming. And while many assume FDs are fully insured, only ₹5 lakh per bank per depositor is actually protected by DICGC. Corporate FDs offer zero insurance.
“FDs aren’t bad—they’re just overused,” Mistry clarifies. She supports using them for emergency funds, short-term goals, or for seniors seeking capital stability. But for long-term wealth building? “FDs quietly fail you.”
“The biggest financial risk today isn’t market volatility—it’s the illusion of safety,” she writes.