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Compare · SIP vs FD
SIP vs FD
Same money every month — one into an equity SIP, one into a fixed/recurring deposit. See the long-run gap, with an optional post-tax view.
Equity SIP vs RD · same monthly contributionA fixed deposit offers a guaranteed, lower return and is taxed at your income slab. An equity SIP carries market risk but has historically delivered higher long-run returns, and equity gains are taxed more gently (12.5% long-term, above a ₹1.25L annual exemption). Over long horizons even a few percentage points of extra return compounds into a large difference — but the FD’s certainty has real value for short-term or capital-protection goals.
Frequently asked
- Is SIP better than FD?
- For long-term goals (5+ years), an equity SIP has historically outpaced fixed deposits by a wide margin because of higher compounding and friendlier taxation. For short-term needs or money you cannot afford to lose, an FD's guaranteed return is safer.
- How is FD interest taxed?
- FD and recurring-deposit interest is fully taxable as 'income from other sources' at your marginal income-tax slab, and banks deduct TDS. Turn on the post-tax toggle to see how this narrows the FD's effective return.
- Are SIP returns guaranteed?
- No. SIP returns depend on market performance and can be negative over short periods. The assumed return here is an estimate for comparison only, not a guarantee.