Think your money’s safe in FDs? This advisor says you’re quietly getting poorer

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. Advertisement

“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 l