Is it a good idea to open new Fixed Deposit every month for retirement for next 10 yrs ?

POSTED BY suren ON October 7, 2013 4:04 pm COMMENTS (6)


I am 42 yrs old and I am planning to open new Fixed Deposit of 25K every month for the next 10 years for my retirement planning. Is this a good move?

I have seen the Mutual funds pas t performance for the last 1 to 3 yrs and not sure if this is right option as the returns are fluctuating and the top/best mf’s list keeps on changing every month or so.

Please advise.




6 replies on this article “Is it a good idea to open new Fixed Deposit every month for retirement for next 10 yrs ?”

  1. ashalanshu says:

    Dear suren, if you are comfortable with the Idea, please go ahead.



  2. suren says:

    I agree with inflation being a major factor for any future returns. With the kind of scams going on ( recently NSEL ) and the stock market manipulations, protecting basic principal investment is a must for retirement.
    With RD, you have to mandatorily do. My plan of new FD is even if I miss for a month, I can continue next month, though discipline is the key here.
    But, sincere thanks for the the folks who have responded.


  3. ashalanshu says:

    Dear Suren, what about Inflation of 10+% when you are earning 6.5% from your RDs or FDs? Please think over it.



  4. suren says:

    For the retirement,protecting principal is the key, hence I was more keen on FD though post tax, it will be around 6.5% returns. I have been investing in equity related MF’s since 2 years and the returns are very volatile. For ex., today my investment of 3L in mf since last year is a -ve of 500/- because of the recent fall in stock markets.
    I will definitely look into the suggestion of debt MF’s from another reader.


  5. ashalanshu says:

    Dear Suren, who ‘ll pay tax on the FD and RD interest?



  6. Anshuk Jain says:

    10 yrs is good amount of time. You can divert some money to monthly SIP. Instead of opening a FD every month, you can go for a RD. You can also look for SIP in debt funds which will give you better liquidity and tax treatment

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