Sri Lanka cash decision desk
Fixed deposit or unit trust? Compare the trade-off, not just the rate.
A fixed deposit gives you a defined institution, rate, and maturity. A unit trust gives you units in a managed portfolio whose value and return can change. Use current published data, then decide around access, certainty, and risk.
Rate certainty
FD: Defined by the deposit terms
Fund: Return changes with the portfolio
Access
FD: Normally tied to maturity
Fund: Open-ended funds usually redeem on dealing days
Capital value
FD: Contractual deposit claim
Fund: NAV per unit can rise or fall
Best first question
FD: Can I leave this money locked?
Fund: What risk and settlement time am I accepting?
Scenario calculator
Put both options on the same amount and horizon.
Edit the rates using an offer or fund fact sheet you have verified. The fund input is an assumed pace, not a guaranteed return.
Fixed deposit projection
LKR 1,100,000
Projected interest: LKR 100,000
Unit-trust scenario
LKR 1,085,000
Scenario change: LKR 85,000
Difference in this scenario
−LKR 15,000
A larger projected number does not settle the decision. A fixed deposit locks a published rate and maturity; a unit trust keeps market, credit, liquidity, fee, and return uncertainty.
Projection assumes annual compounding for comparison only and excludes tax, fees, distributions, early-withdrawal penalties, and product-specific payout rules. Confirm the exact terms before investing.
Published deposit quotes
Leading observed 12-month FD rates
Indicative rows only. Slabs, payout method, customer eligibility, and freshness can change the real offer.
- Current FD comparison data is temporarily unavailable.
UTASL reported performance
Money-market fund context
Ranked by reported YTD—not by the calculated pace and not as a recommendation. Check live dealing prices and fees with the manager.
- Current unit-trust comparison data is temporarily unavailable.
A practical decision sequence
Choose the constraint first. Compare returns second.
- 01
Set the access date
If you may need the money before the deposit matures, price the penalty or keep that portion liquid.
- 02
Match the risk category
Compare a cash-like money-market fund with a short FD—not an equity fund with a one-year deposit.
- 03
Calculate the net outcome
Ask about withholding tax, fees, distributions, payout frequency, and the amount or customer slab.
- 04
Verify the live document
Use the bank’s current rate sheet or the fund manager’s fact sheet before sending money.
Questions savers ask
Fixed deposit vs unit trust FAQs
Is a unit trust safer than a fixed deposit in Sri Lanka?
They use different protections. A fixed deposit is a contractual deposit with a licensed institution and may qualify for deposit-insurance protection subject to the prevailing scheme and limits. A unit trust is a market investment regulated by the SEC; its NAV and return are not guaranteed. Check the institution, fund category, offering document, and current rules.
Can I withdraw a unit trust before one year?
Many open-ended funds allow redemptions on business days, subject to the manager’s cut-off time and settlement period. A fixed deposit normally has a maturity date and early withdrawal can reduce interest or trigger a penalty. Verify the exact dealing and withdrawal terms.
Does the highest reported unit-trust return beat the best FD rate?
Not necessarily. A published FD rate is a contractual annual rate for a defined product. A unit trust’s reported YTD return is historical, can change, and may come from a different risk category. Compare like-for-like horizons, liquidity, fees, tax, and risk rather than ranking the two numbers as equivalent promises.
Should emergency savings go into a fixed deposit or money market fund?
Emergency money generally needs quick access and capital stability. A short deposit ladder can lock part of the cash, while an open-ended money market fund may offer easier redemption but is not guaranteed. Many savers keep an immediately accessible cash buffer and compare the remaining amount separately.
Are fixed-deposit and unit-trust returns taxed the same way?
Tax treatment can depend on the product, investor type, distributions, withholding rules, and current law. Do not rely on a gross-rate comparison for a final decision; confirm the current net treatment with the institution, fund manager, or a qualified tax adviser.
This page is financial education, not personal investment advice. Data can be delayed, incomplete, or revised. Confirm rates, product eligibility, liquidity, fees, tax treatment, deposit-insurance coverage, and the latest offering documents directly with the institution or fund manager.