FDs, RDs & Savings Accounts: Why They May Not Help Build Wealth After Tax & Inflation

Are savings accounts, fixed deposits and recurring deposits really investments? While these products help keep your emergency fund safe and liquid, their post-tax returns may struggle to beat inflation. Gauri Chadha, Tax Expert, explains how taxation impacts FD, RD and savings account interest, why a 6% FD return may fall to 4.1% after tax for those in the 30% tax slab, and why these products may not be ideal for long-term wealth creation. Learn how to manage your emergency corpus and understand the difference between saving money and building wealth.