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How inflation kills FDs and how senior citizens can work around it

Money Control · 1y

Fixed deposits have been a popular choice for many Indian investors, especially senior citizens, due to their perceived safety and guaranteed returns. However, the impact of inflation on the real value of savings over time is often overlooked. Inflation erodes the purchasing power of money, making fixed deposits less effective in generating real gains. This is particularly relevant for senior citizens who rely on fixed deposits for post-retirement income. Diversifying the investment portfolio, considering inflation-protected securities, and seeking advice from financial experts are recommended strategies to combat inflationary effects.