Furthermore, to make the issue more clear, let us understand the current Fixed Deposit scenario. Firstly, a lot of investors who are above the age of 40 would remember that there was a time when a bank used to offer FD rate of around 10%, even 12% at a certain period. However, those days are long gone and there are hardly any well-known banks that you know who offer in excess of 7%. And if any bank has a higher cap of 8% then consider yourself lucky. However, the question here is, do you really need to resort to the banks for investment in Fixed Deposits?