For financial security, nowadays almost everyone is making investments in some schemes. Mostly, people prefer to invest in safe and secure options like Fixed Deposit (FD). But the interset rates in FDs offering by many banks can seem low. In that case, investing only in FD, can you become rich after few years? Recently an expert describes, how to become rich only by investing in Fixed Deposit scheme.
What the expert said
According to Nitin Kaushik, today’s FD rates are around 6.3-7% annually, while inflation is around 2.1%. This means your actual return is only between 4.2-4.9%. He cited the example of someone investing ₹10 lakh in an FD, and said that after one year, their actual purchasing power would be only ₹10.42 lakh.
Yet, nearly 70% of Indian households consider FDs to be their most reliable source of savings. Kaushik says this is because people are lured by the promise of guaranteed safety, lack financial literacy, and fear market volatility. However, he cautions that this safety only exists as long as inflation is low; as inflation rises, the interest earned from FDs becomes ineffective, and your real wealth begins to decline.
Kaushik said that if inflation is higher than FD returns, your real wealth is decreasing, not increasing. Therefore, he advised investors to diversify their investments instead of relying solely on FDs. Kaushik suggested that investors should include equities (12–15% CAGR), debt funds (6.5–8%), and inflation-hedging assets like gold or REITs in their portfolios, along with FDs. Financial experts also believe that relying solely on safe investments can prove detrimental in the long run, as it eliminates the benefits of compounding and growth potential.
💸 The Silent Wealth Trap
FD rates today are around 6.3–7% per annum (top banks).
Current inflation is about 2.1%Your real return is approximately 4.2–4.9% per year (FD rate minus inflation)[5][10].
So, ₹10L in FD today will have purchasing power of around ₹10.42L next year…— CA Nitin Kaushik (FCA) | LLB (@Finance_Bareek) October 5, 2025
