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When it comes to gold or FD, knowing which is better will help in making informed investment decisions. While both are traditional and widely popular investment avenues, they have their benefits.


By understanding the benefits of gold vs FD and comparing them, you can choose the ideal instrument. So, read on to learn more about these instruments and choose a suitable one that best suits your requirements.

Gold vs Fixed Deposit: A Comparative Analysis

To effectively compare an investment in gold vs FD, you need to understand the key differences between these avenues. Here is an overview of these differences:


Fixed Deposits



Depends on the issuer and the type of FD you have 

Gold is a highly liquid investment instrument that you can easily buy or sell whenever you need it

Risk and Returns 

Fixed deposits have comparatively low investment risk 

Gold is also a low-risk investment avenue as it has outperformed inflation and resulted in long-term wealth generation 

Loan Facility

Can get a secured loan by pledging your FD as collateral

Pledge your gold as collateral and get funding without liquidating the asset

Investment Horizon

Ranges from 7 days to up to 10 years

With physical gold, you can stay invested as long as you want

Tax Implications and Benefits

The interest earned is subject to TDS deduction and gets added to your total income 

The returns you get from gold are your capital gains, and are taxed based on that

Fixed Deposit Investments

A fixed deposit is a financial instrument that offers returns at a predetermined interest until maturity. You can open an FD at any commercial/public bank or NBFC. One advantage is that FDs offer higher interest rates than a conventional savings account. 


It also offers a slew of other benefits that make it a more appealing investment option. For new investors with a low-risk appetite, FDs are an excellent place to begin their investment journey.


fd vs gold

Gold Investments

Gold is among the traditional instruments that many rely on. One key reason for this is that gold is a way to hedge against inflation as its value does not get eroded with inflation. 


This, coupled with its liquidity, allows you to lower your risk. There are now several ways to invest in gold, making it more accessible than ever. Some of these options are ETFs, bonds, FoFs, and more.

Gold vs FD: Which Investment Option to Pick?

Gold and fixed deposits are wonderful options to explore if you're seeking low-risk investment opportunities. To choose from gold vs fixed deposits, you need to assess your risk tolerance, investment horizon, goals, and other such factors. 


You should also compare gold vs FD returns, to understand which avenue would be more suited for your needs. It is crucial to remember that while both offer several benefits, they also come with some drawbacks. 


In gold investments, you will need a sound understanding of market trends to know when to exit and protect yourself from monetary loss. On the other hand, FDs come with a set tenor, and you may not be able to access the invested funds before the period ends without incurring a penalty for premature withdrawals.


So, consider these factors as well while deciding between FD vs gold. Whether you choose gold or FD, you can easily invest via Bajaj Markets. With a simple online process, you can book an FD or invest in Sovereign Gold Bonds in just a few clicks.


The information provided by BFDL herein above is related to the Non-Partnered Banks/ NBFCs and is just for the purpose of information and under no circumstances the information provided hereinabove is intended to be source of advice or recommending any financial investment advice or endorsement of any sort. 

The information including interest rates with regard to fixed deposit, provided on this website is gathered through publicly available sources over the internet and is considered as accurate and reliable to the best of our knowledge. BFDL disclaims any responsibility or liability regarding inaccuracies, omissions, mistakes etc. as well as offers by the Non-Partnered Banks. The use of information set out is entirely at the User’s own risk and User should exercise due care prior taking of any decision, on the basis of information mentioned hereinabove. You are advised to visit/ contact the respective Banks/ NBFCs to verify the information before making any investment or opening an account. Further, BFDL does not undertake any responsibility or liability to update this information. YOU ARE SOLELY RESPONSIBLE FOR ANY LIABILITY OR DAMAGE YOU INCUR THROUGH ACCESS TO OR USE OF THE SITE OR SUCH INFORMATION OR MATERIALS EXCEPT WHERE THE LAWS AND REGULATIONS OF A PARTICULAR JURISDICTION CONCERNING WARRANTIES CANNOT BE WAIVED. Additionally, display of any trademarks, tradenames, logo and other subject matters of intellectual property owners. Display of such Intellectual Property along with the related product information does not imply BFDL’s partnership with the owner of the Intellectual Property of such products. 

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FAQs On Gold vs FD

Choosing between gold and FD depends on your risk appetite, investment goals, horizon, and a few other factors. You need to understand the benefits and drawbacks of both avenues to choose the right option.

FDs have a set interest rate, whereas physical gold’s value shifts based on market-linked factors. However, for certain gold securities like bonds, ETFs, and others, the returns depend on the terms and conditions mentioned. 

With FDs, the rate you get depends on the issuer, tenor, and some external factors. For gold, the returns depend on the mode through which you invest. Currently, you can invest in FDs that offer returns of 8.60% p.a, or even higher.

Yes, investing in gold is safe as it offers good returns in the long term and serves as a hedge against inflation. However, the value is influenced by market volatility, so it can fluctuate in the short term.

There are many ways through which you can invest in gold. One of the most popular and oldest modes is physical gold in the form of coins, bars, or jewelry. You can also invest via bonds, ETFs, FoFs, and more.

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