{"id":8337,"date":"2025-08-12T09:48:37","date_gmt":"2025-08-12T09:48:37","guid":{"rendered":"https:\/\/lemonn.co.in\/blog\/?post_type=banking&#038;p=8337"},"modified":"2025-08-12T09:48:38","modified_gmt":"2025-08-12T09:48:38","slug":"differences-between-elss-and-fd-meaning-and-overview","status":"publish","type":"banking","link":"https:\/\/lemonn.co.in\/blog\/banking\/differences-between-elss-and-fd-meaning-and-overview\/","title":{"rendered":"Differences Between ELSS and FD: Meaning and Overview"},"content":{"rendered":"\n<p>Equity\u2011Linked Savings Schemes (ELSS) are mutual funds that invest primarily in equities and offer tax benefits under Section&nbsp;80C. Fixed deposits are low\u2011risk instruments with guaranteed returns. ELSS returns are market\u2011linked and can be higher but are not guaranteed, whereas FD returns are fixed. ELSS has a mandatory three\u2011year lock\u2011in period but offers potential for capital appreciation. FD lock\u2011in for tax\u2011saving FDs is five years. Investors should choose based on risk tolerance, investment horizon and tax planning needs.<\/p>\n\n\n\n<h2 id='elss-vs-fd'  id=\"boomdevs_1\" class=\"wp-block-heading\">ELSS vs. FD<\/h2>\n\n\n\n<figure class=\"wp-block-table\"><table><thead><tr><th>Attribute<\/th><th>ELSS<\/th><th>Fixed Deposit<\/th><\/tr><\/thead><tbody><tr><td>Risk<\/td><td>Market\u2011linked (high)<\/td><td>Low<\/td><\/tr><tr><td>Returns<\/td><td>Variable; historically 10&nbsp;%\u201315&nbsp;% over long term<\/td><td>Fixed (~5&nbsp;%\u20138&nbsp;%)<\/td><\/tr><tr><td>Lock\u2011in<\/td><td>3&nbsp;years<\/td><td>5&nbsp;years (tax\u2011saving FD)<\/td><\/tr><tr><td>Tax treatment<\/td><td>Gains taxed as LTCG after 3&nbsp;years; dividends taxable<\/td><td>Interest taxed as per slab; principal eligible for 80C in tax\u2011saving FD<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>Diversify across FDs and ELSS to balance risk and return. Consult a financial adviser for personalised guidance.<\/p>\n","protected":false},"featured_media":0,"template":"","class_list":["post-8337","banking","type-banking","status-publish","hentry"],"blocksy_meta":[],"_links":{"self":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/banking\/8337","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/banking"}],"about":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/types\/banking"}],"wp:attachment":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/media?parent=8337"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}