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Rental Property vs FD — leveraged real estate or guaranteed safety?

A rental property uses leverage and produces income, with real risk and illiquidity. An FD is fully guaranteed and liquid at maturity, with no growth beyond the fixed rate. Compare both on the same capital deployed.

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Rental Property vs FD Calculator15-year comparison

Opens Compare Lab pre-loaded with both, in your own currency — adjust any input and the chart updates instantly.

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How each one actually works
Rental Property

A residential property purchased (often with a home loan) to generate rental income alongside potential appreciation.

PROS
Produces ongoing rental income, not just appreciation
Loan leverage lets you control an asset larger than your cash alone
A tangible asset with a well-established resale market
CONS
Vacancy periods and maintenance reduce net income below the headline rent
Illiquid — selling takes time and incurs transaction costs
Loan interest and upkeep are real, ongoing costs

Best for: Investors who want income plus appreciation and are prepared to actively manage a physical asset (or pay someone to).

Fixed Deposit (FD)

A lump sum deposited with a bank for a fixed tenure at a fixed, guaranteed interest rate.

PROS
Fully guaranteed return — no market risk
Predictable maturity value known upfront
Widely available and simple to open
CONS
Interest is fully taxable at your slab rate every year it accrues
Return is capped — no upside beyond the fixed rate
Early withdrawal usually triggers a penalty

Best for: Capital you can't afford to risk — an emergency fund, or a short-term goal within a couple of years.

Questions
Is property definitely a better long-term bet than FD?

Not automatically — it depends heavily on financing cost, occupancy, and local appreciation, all of which this comparison lets you set explicitly rather than assuming property always wins.

Where do these numbers actually come from?

The same calculation engine that powers our standalone calculators and Compare Lab — nothing here is a separate or simplified estimate. Every assumption (rate, tenure, tax) is visible and adjustable once you open the comparison with your own numbers.

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All figures are illustrative projections based on the assumptions you select, not guaranteed returns. Validate tax and scheme rules before making financial decisions.