A honest, side-by-side comparison to help you decide where to put your money in 2026
Looking to book an FD? Try BookMyFD.in
| Parameter | 🏦 Fixed Deposit (FD) | 📈 IPO Investment |
|---|---|---|
| Returns | 6.5%–9% p.a. (guaranteed) Predictable | Variable — listing gain of -20% to +100% High Potential |
| Risk | Very Low — DICGC insured up to ₹5L Safer | Moderate — allotment not guaranteed, listing may be below issue price |
| Minimum Investment | ₹1,000 (varies by bank) | ~₹14,000–₹15,000 (1 lot at cut-off price) FD wins |
| Liquidity | Moderate — premature withdrawal allowed with 0.5–1% penalty | High — shares can be sold on listing day IPO wins |
| Investment Horizon | 7 days to 10 years (flexible) | 7–14 days for listing gain; longer for portfolio building |
| Tax Treatment | Interest taxed as per income slab (10–30%+). TDS at 10% if interest > ₹40,000/year. | STCG at 20% if sold within 1 year. LTCG at 12.5% above ₹1.25L if held 1+ years. IPO wins |
| Account Required | Bank account only | Demat + Trading account + UPI/ASBA |
| Capital Protection | 100% (up to ₹5L DICGC insured) FD wins | Not guaranteed — listed price may fall below issue price |
| Effort Required | Very Low — set and forget FD wins | Moderate — research, apply, track GMP, decide when to sell |
| Allotment Guarantee | 100% — funds go in immediately | Not guaranteed — lottery-based for retail investors FD wins |
You don't have to choose just one. Most successful investors use FDs for capital protection and IPOs for growth. A simple approach:
* Allocation depends on age, risk appetite, and financial goals. Consult a SEBI-registered advisor.