Banks pay Investors 6-7% on Fixed Deposits. Banks use the same funds to give loans to Corporates at 8-10%. These Corporates use the money to earn well above 8-10% on the borrowed funds. In such a scenario, it makes more sense for FD investors to invest directly in these same Corporates as owners, which earn almost twice the rate of FDs.
The above argument has strengthened my conviction to invest only in Equity-linked instruments for long term wealth creation. Overall FDs are a useful tool to invest some reserve funds in. But Indians as a whole are far more invested in FDs than they need to be.