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SIP vs FD – Which Is Better for Long-Term Wealth?

📅 08 Aug 2026 ⏱️ 5 min read ✍️ Bhaskar G.

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SIP vs Fixed Deposit — Complete Comparison

This is one of the most asked questions in personal finance. Let us compare with real numbers.

₹10,000/Month for 15 Years

ParameterFD (7%)SIP (12%)
Total Invested₹18,00,000₹18,00,000
Maturity Value₹31,78,178₹50,45,760
Returns₹13,78,178₹32,45,760
Tax on Returns₹4,13,453 (30%)₹3,24,576 (10% LTCG)
Post-Tax Value₹27,64,725₹47,21,184

SIP gives you ₹19.56 lakh more than FD after 15 years — even after tax!

When to Choose FD

Choose FD for emergency funds (3-6 months), short-term goals under 3 years, and if you cannot handle any market volatility at all.

When to Choose SIP

Choose SIP for long-term goals over 5 years, wealth creation, retirement planning, and when you want tax-efficient growth.

Calculate your returns with our free SIP calculator.

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