Ans:
Gold is a low-risk hedge against inflation and a fall in currency rates. It provides both premature liquidation and gold loan options. A bank FD premature closure is penalized with 1% of the interest earned. If you buy gold every year for 5 years, an ET Wealth report says you’ve earned 18% CAGR in returns. FD’s interest rates are linked to the term and offer an annual rate of 5-6% with an additional 0.5% for senior citizens. Gold can be sold and is a high liquidity investment whereas the FD liquidity is dependent on the bank.