@Girish Khanna @Punkeirang I think FD is a good option for Senior citizens since they get a good interest rate plus some extra tax saving benefit also. But, for others the interest rate you are saying 7-8% is not the actual rate. This is before tax rate. And, more interest is offered for long term FDs. Also, the real rate of return is much lesser after taxes. So, you basically get lesser in hand amount.