When it comes to gold vs fixed deposits (FDs), determining the better instrument depends on various factors, including your financial goals, risk tolerance, and investment time horizon. Here's a comparison of both to help you make an informed decision.

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 

Highly liquid investment instrument that you can easily buy or sell whenever needed

Risk and Returns 

Comparatively low investment risk 

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

Can be pledged as collateral and get funding without liquidating the asset

Investment Horizon

Ranges from 7 days to up to 10 years

Option to remain invested as long as you require

Tax Implications and Benefits

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

Returns earned are considered capital gains, and are taxed accordingly

Gold vs FD: Which Investment is Better?

Gold and fixed deposits are great options to explore if you're seeking low-risk investment opportunities. However, you may need to assess your risk tolerance, investment horizon, goals, and other such factors before you consider either of them. 

  • Financial Goals: Consider whether you are investing for short-term or long-term goals.

  • Risk Tolerance: Assess your risk tolerance and preference for stability or potential capital appreciation.

  • Liquidity Needs: Evaluate your need for liquidity and how easily you may need to access your funds.

  • Diversification: A well-diversified portfolio may include a mix of asset classes, including both gold and fixed-income instruments.


In summary, the choice between gold and FDs depends on your specific financial situation and goals. Some investors may choose a combination of both to balance risk and returns. Whether you choose to invest in 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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Which is best, gold or 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.

What is the interest rate on gold vs FD?

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.

Is gold investment a secure option?

Yes, investing in gold is often considered 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.

What are the various modes of gold investment?

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 sovereign gold bonds, ETFs, FoFs, and more.

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