If You Had Invested ₹1,00,000 in Gold Instead of An FD ,Where Would You be Today?

What if you chose gold over an FD ten years ago? Ever had that thought? "What if I had put my ₹1,00,000 in gold instead of locking it away in a bank FD in 2015?" It’s a nagging question for many Indian investors. 

You might feel like you missed out. Maybe you did. But today, we won’t just scratch the surface. Let’s tear this apart, number by number.

FD vs Gold: 10-Year War for Growth

Most Indian investors pick FDs without a second thought. It’s safe, simple, and predictable. But predictable isn’t always profitable.

2015, the average interest on a 5-year FD was around 7.5%. Fast forward to 2025, and you would have turned ₹1,00,000 into around ₹1,44,000. Steady, sure. But is it exciting? Not really.

Now, if that ₹1,00,000 had gone into gold in 2015,  when gold was trading at around ₹26,000 per 10 grams,  you’d be sitting on gold worth nearly ₹2,59,000 in 2025. That’s not just growth. That’s almost double the returns.

Here’s the deal: The Indian economy faced inflation shocks, policy shifts, and global uncertainty. Gold, being a safe-haven asset, soared.

Let’s break this with actual figures:

That’s not just a difference. That’s a lost opportunity. Still think FD is safer?

Breaking the FD Mindset: Why It Holds You Back

Most Indians trust FDs like they trust morning chai. And it’s not hard to see why. Guaranteed interest. Zero risk. Familiarity. But when you adjust for inflation, taxes, and purchasing power, FDs lose their shine.

Let’s look at it closely:

• Average 5-year FD Rate (2015-2025): ~6.5%
• Post-tax Return (assuming 30% tax slab): ~4.5%
• Inflation Range (2015–2025): 4% to 6%

So, did your money really grow? Not really. It barely stayed afloat.

FDs make you feel safe but silently erode value. That ₹1,00,000 turned ₹1,44,000 over 10 years. But when you factor in tax and inflation, the actual worth is closer to ₹1,15,000.

Compare that with gold. Even with no interest, it outpaced inflation and gave 10–11% average returns over the decade.

Read More - Will FD Interest Rates Increase In 2025

A quick table to break it down:

This mindset shift matters. Saving is not growing. And growing requires some risk.

Gold: Not Just Shine, It Works Like a Machine

Gold isn’t just a metal. For Indians, it’s emotion. For investors, it’s strategy.

In the last decade, gold gave double-digit returns in most years when equity markets wobbled or when inflation spiked. During COVID-19 and market crashes, it protected portfolios.

But not all gold is equal.

There are types:

• Physical Gold – Jewellery, coins. Emotional but comes with making charges.
• Gold ETFs – Market traded, transparent.
• Sovereign Gold Bonds (SGBs) – Government backed, 2.5% annual interest, no capital gains tax after maturity.

Look at this:

SGBs clearly lead the pack. In fact, if you’d invested ₹1,00,000 in SGBs in 2017, it’d be worth nearly ₹2,21,000 today. And that’s with fixed 2.5% annual interest and tax-free maturity gains.

Also Read - Why More Indians Are Investing in Gold ETFs in 2025?

Risk and Reward: What Suits You?

Here’s the truth. Gold isn’t magic. It drops too. In short-term, gold can dip. But it recovers. Over 10 years, the trend has always moved up.

FDs never drop, true. But they never surprise either.

To decide, ask yourself:

• Are you parking idle funds? → Go FD.
• Want wealth to grow? → Choose Gold or mix it.
• Scared of tax? → Go SGBs.
• Want returns + liquidity? → Try ETFs.

Let’s add some more data:

Diversifying isn’t just for the wealthy. It’s smart even for ₹10,000 investments.m

Final Thoughts

Investing is not a game of just protecting money. It’s about growing it smartly.

In 2015, had you chosen gold, you’d be ₹1,15,000 richer than if you chose an FD. That gap is too big to ignore.

Don’t always go with tradition. Go with what performs. FDs have their place. But gold,  especially via SGBs, has proven to be the silent winner over time.

It’s never about timing the market. It’s about time in the market.

So, next time you want to park that ₹1,00,000, ask yourself: Do you want comfort or growth?

FAQs

1. Is it better to invest in gold or an FD for retirement?

If safety is your top concern, go with a mix. But long-term goals like retirement need inflation-beating returns. Gold (especially SGBs) performs better.

2. How can I invest in gold without buying jewellery?

Try Sovereign Gold Bonds or Gold ETFs. Both are paper gold options. No making charges, no storage hassle.

3. What is the lock-in period for SGBs?

SGBs have an 8-year maturity with exit options after the 5th year. But early exit loses the tax-free benefit on capital gains.

4. Is FD safe during a recession?

Yes, but returns drop when the RBI cuts rates. So your money is safe but stagnant.

5. Can I mix FD and gold in my portfolio?

Absolutely. It’s wise. Many experts suggest putting 10–20% in gold, the rest in safer or diversified options.