which is the best option of investment - Fixed deposits or property?

Fixed deposits means ready cash, property can be rented out and it is also a steadily growing income..


Category: Business & Finance

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Fixed deposit earns interest and matures for payment on due date, you may take a loan against FD or prematurely withdraw. You may make deposit of even very small amounts unlike property. Your FD is safe wherever you go. It is okay to get one house for your living. Unless you are in property dealing business as a builder or developer, it is risky to acquire more property. Property management is also a whole time job. It is better to concentrate on your own job, acquire only one dwelling unit for self and invest most of your money in health and accident policy, life insurance to the extent necessary, equity shares, mutual funds and bank deposits.
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On an average, if we keep our money in FD we get 7-8% returns. If we buy property, the return we get is approximate 11-12%. Now, there is one more factor which we need to see is 'Inflation'. Inflation rate is approx 8%.
 I want to explain by giving one example.

If you put 100 rupees in FD, you will earn 8% in that, which means you earn 8 rupees in a year, which brings your total of 108 rupees. But there is also inflation, which is eating your money. Inflation rate is 8%. so it means if you have 100 rupees in your pocket and you don't do anything, your 100 rupees will become 92. So 108 -8(8% inflation rate), which again brings your money to 100.
 So, even though you earn 8 rupees from 100 rupees you invested in FD, in real terms you earn nothing.

As per my view only 20-25% of your money should be kept in FD. I will prefer rather prefer to put money in Mutual funds.

Property investment is good, but for that you require more capital. You should invest in properties too.

Any investment which beats your inflation rate is better.

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I think buying a property is definitely a better option than fixed deposits because prices of properties always increases day by day but in the case of fixed deposits the interest rate remains the same for a fixed period of time. The property can also be rented out. The most important aspect of investing in property is that it helps in saving tax but fixed deposits don't come with a "Save tax" tag.
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If I were to choose from the two, I will certainly go for the second option. FDs are fine still, but the rates are low and can get lower. But as far as property or real estate is concerned, they will always be in demand. I guess there will always be more profit in property dealings.
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Property is best option for investment. Day by day rate of properties increases fast.
Fixed deposit also good But, its interest value is low.
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I think property is the better option provided you have that much money to buy it otherwise FD is good way of investment.
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I think there should be a proper balance between both the options. It is always better to have assets that can be liquidated very easily and in short period of time where ready cash put in FDs is one example. FDs may earn a bit little interest than other options but they are stable and safe and there is no fear of losing them, like in case of properties which are a bit tedious to be sold out and also risky when you rent them. So it is better to have a little of both rather than investing in only one or the other option.
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It depends.. If we have prime property to buy than it is surely better than FD and can give you much more profit.
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Depends, You cannot compare them in a casual way, some times it's better to go for property if it has potential to increase due to its location and other crucial reasons. Age of investor is another factor, for elderly people it's always better to go for fixed deposits.
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Many factors involved in a decision of investment. Every investment has its own ups and downs. Comparing them is an arduous task. However if you compare property with fixed deposit then property will have its upper hand. In fixed deposit people can double their investment in 7 years whereas if invested in property, the capital can be doubled in 3-4 years, which is good :)
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Buying a property is better than fixed deposit.

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Comparing fixed deposit and property,i always suggest to put your investments in property because the reason follows..
First thing,When we hold our investment in FD,we are keeping our money to another person subject to an interest of a period.At the same time,if we buy a property,it will become an asset and the income can be decided by our-self.
Second thing,we have to wait for the growth of our money in the case of FD for some years.Other hand,in property side we can get the returns immediately while comparing with FD.
Hence,my opinion will be to put investments in property rather in FD..
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Personally I feel that both the types of investment have their own kind f advantages.

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Dear Friend,

Person deposit money with bank and open fixed deposits. It is most liquid form of investments. Now a days, Banks are giving 5.5% to 7% return on fixed deposits. The ROI is fluctuating up on tenor of deposit.

Property investment is for long term and involving much amount of funds. Over a period of time, investments in property will grow more than the investments in form of FD. 

Hence, Investment in FD is for kept for emergency period- shorter period investment. However, investment in property is for longer tenor.  Due to holding period of investment is different, I cannot comment on whether investment is FD is beneficial of investment in property.

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Property investment seems to be the best bet.

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Look there are 2 ways in looking at this. If you have are young and have a good amount of money then you should no doubt invest in a property as when you are young you can take more risk and can look after the construction of the property. Now the main thing here is you will surely get a better return than a fixed deposit as you can even build a house on the property and put it up for rent and start getting rental income. Now the 2nd way to look at this situation is you are a bit old and do not have enough money to buy a property, cannot take risk and do not have the energy to keep a check on the construction work of the property then putting your money in a fixed deposit is much smarter as the return will be lower but will be suitable for you.

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