In a recent post on X (formerly Twitter), Chartered Accountant Nitin Kaushik cautioned Indian savers about what he calls the “Silent Wealth Trap” — the tendency to park most of their money in fixed deposits (FDs) without considering the impact of inflation and missed opportunities for growth.

“FD rates today are around 6.3-7% per annum, while inflation is about 2.1%. Your real return is approximately 4.2-4.9% per year,” Kaushik explained, highlighting how ₹10 lakh kept in an FD would effectively grow to only around ₹10.42 lakh in real purchasing power after a year. Advertisement

Despite this limited gain, about 70% of Indian households still prefer FDs as their primary savings vehicle. Kaushik attributes this to the comfort of “guaranteed safety,” a lack of financial literacy, and wides

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