BQ Big Decisions: Your Parents May Have Said Bank Deposits Are The Best... But Are They?
An employee holds Indian rupee banknotes while writing on a notepad (Photographer: Dhiraj Singh/Bloomberg)

BQ Big Decisions: Your Parents May Have Said Bank Deposits Are The Best... But Are They?

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The BQ Big Decisions podcast gets you the insight you need to make big money decisions with confidence.

People who grew up in the ’90s have memories of a lot of things such as dial-up internet connection, Windows 95, Cartoon Network, Rol-a-Cola, and a young Sachin Tendulkar. And they’ll probably also remember their parents saying that bank deposits are the best and the only investment option.

In fact, it’s possible that along with a public provident fund they started in their name, they also started a few fixed deposits.

These instruments have somewhat lost their sheen as the equity market gained popularity and bond market deepened in India. Now, in all likelihood, your bank deposit can barely beat inflation after deducting tax.

But, with equity markets currently on a slippery ground — the Nifty 50 Index has lost more than 1,000 points in a little over two months — and financial experts advocating “stay in cash”, it’s a good time to ask whether bank deposits are the safer bet, especially if you don’t have a systematic investment plan running.

On this BQ Big Decisions podcast, BloombergQuint spoke to Amol Joshi, founder Planrupee Investments, to know where bank deposits rank in today’s spectrum of financial investments, and why it’s a bad idea to leave a huge sum of money idle in savings bank account.

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