Fixed deposits remain the go-to for money you cannot afford to risk. Here is what ₹25,000 becomes in 10 years with quarterly compounding.
Maturity value by rate
| FD rate | Maturity value | Interest earned |
|---|---|---|
| 6% | ₹45,350 | ₹20,350 |
| 6.5% | ₹47,639 | ₹22,639 |
| 7% | ₹50,040 | ₹25,040 |
| 7.5% | ₹52,559 | ₹27,559 |
| 8% | ₹55,201 | ₹30,201 |
Keep it honest against inflation
At ~6% inflation, the real (purchasing-power) return of a 7% FD is roughly 1%. FDs are for capital safety and near-term goals — for a 10-year horizon, compare with index SIPs for part of the amount. Interest is taxable at your slab, so the post-tax return is lower than the sticker rate.
Laddering tip
Instead of one ₹25,000 FD, split into three or four smaller FDs with staggered maturities. You keep liquidity without breaking the whole deposit (and paying penalty) in an emergency.
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