FD vs. Life Insurance: A Comprehensive Comparison

# When it comes to financial planning, [**Fixed Deposits (FDs) and Life Insurance**](https://datesfinserv.com/fd-vs-life-insurance/) are two popular investment options. While both offer certain benefits, they serve different purposes and cater to different financial needs. In this blog post, we will delve deeper into these investment vehicles to help you make informed decisions. **Fixed Deposits (FDs): A Safe Haven for Savings** Fixed Deposits are a traditional investment option offered by banks and financial institutions. They provide a fixed rate of interest over a specific period. **Key Features of FDs:** * **Guaranteed Returns:** FDs offer guaranteed returns, making them a safe investment option for risk-averse individuals. * **Tax Benefits:** Interest earned on FDs can be taxed, but certain tax-saving FDs offer tax benefits under Section 80C of the Income Tax Act. * **Liquidity:** FDs can be easily liquidated before maturity, although early withdrawal may incur penalties. * **FD vs. Life Insurance: A Comprehensive Comparison**