Is investing in a ₹10 lakh FD a good financial decision?

When considering investing ₹10 lakhs in a fixed deposit, there are a few factors to evaluate:

1. Returns: The returns on FDs on ₹10 lakhs may range from 4% to 8% or more, depending on the financial institution and tenure opted for. This would mean an interest income of ₹50,000 to ₹70,000 per annum.
2. Safety: Fixed deposits are a comparatively reliable investment option and provide a safety net for a lot of people who are risk-averse.
3. Tenure: Longer tenure FDs usually give better returns. For large amounts, choosing a tenure of 1-5 years is recommended.
4. Liquidity: FDs lock money for a tenure, making liquidity slightly lower. Some financial institutions offer loans against FDs to meet liquidity needs.
5. Taxation: Interest income above ₹40,000 per financial year is taxable as per one's IT slab. TDS may be applicable on interest earned.

So, ₹10 lakh FD can be a good investment given the reasonable returns and stability offered. However, returns are fixed and moderate. Liquidity and other investment avenues could be evaluated before investing in a large corpus. Assessing one's risk appetite and income needs is also advisable before investing.