In the age before digitalization, Fixed Deposit was considered an ideal investment solution because it was safe and gave higher return than savings account. This is still true; however, FDs do not necessarily give the best return on your investment. In fact, it is quite low when compared to Mutual Funds.

The annual return of a 5yrs FD is around 7% depending upon the bank chosen; whereas the average 5 yrs historical annual return in the top 5 (MintWalk suggested) Debt Mutual Funds and Equity Mutual Funds were around 8.5% and 16.7% respectively.