Which is better, Sip or Fixed Deposit?

It depends on your tax bracket, time horizon, and risk tolerance. Use the side-by-side calculator on this page to see which wins for your specific numbers.

How does this Sip vs Fixed Deposit calculator work?

Enter your inputs (amount, rate, horizon) and the calculator computes the after-tax, inflation-adjusted outcome for both options side-by-side. Free, no signup.

Is this analysis US-specific?

Yes. All defaults are based on 2026 US tax brackets, IRS contribution limits, and Social Security wage base. Currency is USD with CAD/GBP/EUR/AUD optional.

Index Fund vs CD

S&P 500 Index Fund vs CD — 5-Year Returns

CDs guarantee the rate; index funds historically beat CDs over any 10+ year window but can lose money in any single year.

Verdict

For goals 10+ years out, index fund wins ~95% of historical periods. For 5-year goals, CD wins about 25% of the time (in bear markets). For under 3 years, always CD or HYSA.

Side-by-side comparison

	S&P 500 Index	5-Year CD
2026 expected return	~8-10%	~4.5%
Worst-case 5-year	-15% historically	+4.5% (guaranteed)
Tax treatment	LTCG 15-20% at sale	Interest taxed yearly
Liquidity	3-day	Locked + early-withdrawal penalty
FDIC insurance	No	Yes ($250K)
Best for	7+ year horizon	Fixed 5-year deadline

Who should pick S&P 500 Index

Long-horizon investors (10+ years). Anyone who can wait an extra year on a goal.

Who should pick 5-Year CD

Anyone with a non-negotiable 5-year deadline (down payment, tuition). Retirees needing predictable income.

Disclaimer. Comparison numbers depend on your tax bracket, state, and time horizon. Educational only — not personalized financial advice. See our Financial Disclaimer.

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