Guaranteed Savings (Endowment) Plan vs Fixed Deposit (FD)

Buy a Life Insurance Plan in a few clicks


Now you can buy life insurance plan online.

Kotak e-Term Plan

Kotak e-Term Plan provides a high level of protection to your loved ones in your absence. Know more

Kotak Guaranteed Savings Plan

Kotak Guaranteed Savings Plan is a savings and protection plan that helps you achieve long-term financial goals and provides an insurance cover against any eventuality. Know more

Kotak E-Invest

Kotak e-Invest plan is a complete Unit-Linked Insurance Plan that can be customized as per your goals and needs. Know more

Kotak Health Shield

Kotak Health Shield Plan helps secure your finances in sudden medical expenses such as Cardiac, Liver, Neuro, and Cancer (all early and significant illness stages/conditions of cancer), along with offering protection for personal accidents - in case of accidental death or disability. Know more

Kotak Lifetime Income Plan

Kotak Lifetime Income Plan gives you the security of your income continuing throughout your life and in your absence throughout your spouse's lifetime! Know more

What is better - Guaranteed Savings Plan or Fixed Deposit?

 What is better - Guaranteed Savings Plan or Fixed Deposit?
  • 15th Jul 2022 |
  • 2,421

Keywords: fd vs endowment plan, endowment plan vs fixed deposit, fixed deposit vs endowment, endowment vs fixed deposit

Everyone is working hard to get the best lifestyle and manage a luxurious living for their family. It is extremely crucial to have sufficient savings so that one can stay financially secure during uncertain times. However, keeping all the money in a savings account is not a wise financial decision. You can deposit your surplus amount in fixed deposits or any other financial instrument. Read the article to understand the difference between the guaranteed savings plan or endowment plan vs fixed deposit.

What is a Guaranteed Savings Plan

A guaranteed Saving Plan refers to the non-participating plans that offer an endowment assurance at a fixed amount. With this plan, the policyholder will have to pay the premiums for a fixed period. However, once the plan matures, policyholders will receive the benefits of the savings plan. The policyholder gets an assured sum of all their premiums paid at the end of the plan’s term with other additions. The additions include a fixed interest rate that is added each year. Along with this, the plan offers a maturity bonus as well at the end of the term. In addition, those who opt for a savings plan can apply for the tax benefits.

Features of a Guaranteed Savings Plan

Various features of guaranteed saving plans are listed below:


With a guaranteed savings plan, you can choose to pay the premium amount either over some time period or in a single shot. These options are provided to ease the burden on the policyholders.

Policy Term

The policyholder can choose the term that suits their needs.

Guaranteed Maturity Benefit

Under this plan, the policyholder is assured of getting the benefits upon the maturity of the policy. Also, the maturity benefit is payable in case the policyholder survives past the end of the policy term.

Death Benefit

Many policy providers offer death benefits as well. The benefit is provided to the beneficiary in case of the sudden demise of the policyholder.

Trial Period

If the policyholder is not satisfied with the clause and terms and conditions of the policy, then they can easily cancel the policy and return the documents within 15 to 30 days of commencement.


If the policyholder wants to revive the policy that was discontinued for not more than three years ago, then the insurance provider will accept your request.


Once the policy acquires a surrender value, you may avail the loan against insurance policy facility. The amount of loan available with the savings plan varies from bank to bank and policy sum.

Guaranteed Savings Plan vs Fixed Deposit





Ten to thirty years or longer

One to five years


Min: ₹1000

Max: Limitless

Depends from plan and plan and generally ranges between ₹2500-₹500 per month


Monthly, quarterly, or annually

Guaranteed set of pre-determined returns


Collected funds can be invested in monthly or annual instalments, or a lump sum payout of the corpus can be opted for

Lumpsum payout at the end of tenure

Tax Benefits

Premiums upto ₹1.5 lakhs are exempted under Section 80C of the IT Act

No benefits generally. However, the 5-year tax-saving FD offers benefits under Section 80C of the IT Act

With the above-mentioned details, you can easily differentiate between FD vs endowment plan and select which one is best for you. Fixed deposits offer a flexible tenure, whereas a savings plan offers various maturity benefits. Therefore, it is advisable to have a mix of investment plans for a good outcome.

Kotak e-Invest

In this policy, the investment risk in the investment portfolio is borne by the policyholder.


  • Return of Mortality Charges*$
  • Enhanced Protection
  • Multiple Plan Options
  • Zero Premium Allocation Charges
  • Tax Savings^

Ref. No. KLI/22-23/E-BB/521


Browse our library of resources

- A Consumer Education Initiative series by Kotak Life

Similar Articles

Which is a Better Investment - Mutual Funds Or ULIP?

Why Do You Need A ULIP Plan - All You Need To Know

ULIP Benefits You Can Avail from Early Investing

How To Diversify Portfolio In 2022?

What's Better for Your Child's Education? Child Plans or Mutual Funds?

Beginner's Guide to Wealth Creation: Meaning, Strategies, & Importance

Top 10 Investment Strategies to Create Wealth

What are the Best Investment Options for Young Adults?

Is This The Right Time To Invest In ULIP? Why or Why Not?

Why is Portfolio Diversification Important? How to Diversify Your Portfolio?

Top 6 Investment Plans Available in India

How to Increase Net Worth Along with Family Protection

Are Gains from ULIP Sale Taxable?

ULIP Investment Strategy: Top Tips to Improve Your ULIP Gains

Who Should Invest in Savings Plan?

What is a Savings Plan and What are is Benefits?

Customising investments to manage your wealth

Difference Between Guaranteed Savings Plan and ULIP

How to Manage Your Portfolio Like a Professional?

Asset Allocations in ULIP - Know the Top Benefits

Early Investing and the Power of Compounding

How to Manage Inheritance Money?

What are Some of the Safest Investment Options in India?

Learn About Safe Investments with High Returns in India

Investment Options for NRIs in India

How to Plan Your Child's Education - A Step by Step Guide

What is the Importance of Saving Money?

4 Benefits of ULIP Fund-Switching Feature

Top 5 Principles That Need to be Followed for Wealth Creation

How to Plan Savings from Salary?

Planning Financial Goals and Objectives of Financial Planning

Difference Between Guaranteed Savings Plan and Guaranteed Income Plan

How to Plan your Investment to Achieve Periodic Financial Goals?

उच्च रिटर्न प्राप्त करने के लिए सर्वश्रेष्ठ इन्वेस्टमेंट विकल्प

Why Should Parents Invest in Endowment Plan?

What is ULIP Renewal?

How Much Wealth Can You Create from ULIP in 10 years?

Important Questions You Must Ask Yourself When Buying a ULIP Plan

Which are the Best Investment Plans for Indian Senior Citizens In 2022?

Short Term and Long Term ULIP Plans for Wealth Creation

How to Cancel ULIP Policy?

Things to Know Before Buying an Endowment Plan

Can ULIP Help in Achieving Short-Term Financial Goals?

Why Should You Invest in Term Insurance And ULIP?

Difference Between Passive and Active Investing

How Does an Endowment Plan Work?

ULIP vs FD - Which is Better and Why?

Endowment Plan vs Fixed Deposit?

How is Compoud Annual Growth Rate (CAGR) Calculated in ULIP?

Top 5 Investment Options in 2022 for Healthy Returns

Savings Plan for Grandchildren

What are the Best Investment Options for Students in India?

Building wealth through regular investing

Complete Savings Plan for Low Income Earners

Benefits of ULIP as a Child Insurance Plan

How to Start Saving Money in 10 Simple Ways?

Different Types of Endowment Plans

Do You Know the Difference Between Savings and Investment?

Best Investment Options in India in 2022

What are the Best Investment Options For Females?

What are Deferred Savings Plans?

Why Should You Consider Guaranteed Savings Plan for Long-Term Investment?

How Can a Legal Nominee Claim ULIP Benefits are the Policyholder’s Death?

Receiving regular payouts at various stages of life

3 Tips to Buy Guaranteed Savings Plan

How to Make Your Financial Portfolio?

Learn About Safe Investments with High Returns in India

Creating a second source of income with life insurance

Long Term Savings Plan - Best Savings Investment Plans in India

ULIP as an Investment for Your Child

Are Money Back Policies Helpful? A Complete Guide

Best One-Time Investment Plans in India

Importance of Portfolio Management

What are the Best Short-Term Investment Plans with High Returns?

What are Tax-Deferred Savings Plans?

Safe Investment Options with High Returns for FY 2018-19

How Do One-Time Investment Plans Work?

4 Important Tips to Maximize Gains with ULIP Investments

How to Fulfil Your Financial Goals in the Next 10 Years?

How To Track ULIP Performance?

Debt ULIPs vs. Debt Mutual Funds: What's the Difference?

ULIP Plan as a Gift

What is Fund Switch in ULIP? And ULIP Fund Switching Techniques

Best Investment Options to Cover Your Child's Education

Basics of Guaranteed Savings Plan

Investments Options to Buy a house in India

Planning for Your Child's Higher Education? Explore These Investment Options

Successful Financial Planning for Urban Women

Why ULIP is Better Investment for Long-Term Wealth Creation?

What are the Best Investment Options for Beginners or Amateur Investors in India?

Which is Better – FD, Mutual Fund, SIP, or ULIP?