Money market funds vs FDs: Which gives better post-tax returns?
Guwahati, Oct. 15 -- A fixed deposit gives you a predictable interest rate. But after calculating tax, do you still get the same amount of money? When you choose where to park your money, the return you see upfront is only part of the picture. Among popular products like money market funds and fixed deposits, the return structures are different.
They even have different taxation norms, liquidity, and risk levels. The logical approach while choosing one of these products is to compare their post-tax returns. That's what we have discussed in this blog.
Through fixed deposits, you can invest a lump sum with a bank at a predetermined rate of interest for a chosen tenure. The interest you earn from FDs is taxable based on your respective inc...
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