1️⃣ Fixed Deposits (FD) today earn roughly 6% depending on the bank and tenure. With inflation rate in India averaging 8%, placing money in a Fixed Deposit leads to a serious loss of purchasing power. FD is similar to Certificate of Deposit (CD) in the US so the analysis is applicable to the US as well, especially during the current period of high inflation in the US. 2️⃣ For example, ₹100 in an FD will grow to ₹106 in one year but things you want to purchase may cost ₹108. Over 20 years, while an FD will grow to ₹321, cost of items would have grown to ₹466. This results in a 31% loss in your purchasing power. 3️⃣ It's a big trap. In my opinion, FDs provide downside protection and peace of mind for a short term (1-5 years depending on the circumstances), I would not suggest using them to park money in the long run. There's no one size, fits all approach. I would love to discuss your goals during a *complimentary* 1:1 session for fir...
Timothy Sumer is a philanthropist and motivational speaker empowering young entrepreneurs across the nation. He speaks on starting new businesses and the importance of branding in the digital age. Timothy Sumer has a BA in Accounting from NYU and a Masters in Information Technology from MIT. Tim enjoys traveling around the globe, driving exotic sports cars, molecular gastronomy, exploring new cultures, and keeping on top of the latest technology trends. Hope you enjoy Timothy Sumer's page :)