Fixed deposits (FDs) are one of the most popular modes of investment as it guarantees the safety and security of your money. Not only do FDs provide higher returns as compared to a savings account or recurring deposits (RD), they also maximise the investment benefits of the investor.
There are many kinds of investments methods for fixed deposits, and the maturity period varies from seven (7) days to 10 years in banks and financial institutions. Some banks also offer the FDs for extended tenures up to 20 years.
However, before investing in a fixed deposit scheme, you should thoroughly see which tenure being offered by the banks or financial institutions meets your goals, and choose according to that.
*One should also compare the returns' interest rate of various institutions as per the tenure and your financial goals before investing the money.
*You should also know that bank deposits of up to Rs 5 lakh are protected via the Deposit Insurance and Credit Guarantee Corporation (DICGC), an RBI subsidiary. Thus, to cancel the default risk, you can evade exposure of more than Rs 5 lakh in a single bank through an FD.
Read | Good news for senior citizens! SBI extends THIS fixed deposit scheme – Check details
*You can also break your investments into several FDs in different banks, which is the most reliable way, and make sure to keep the investment amount below Rs 5 lakh.
*You can invest in different FDs of different maturities, and profit from it as interest rates of FD are expected to surge.
*When you will have multiple FD investments, in case of emergencies, you can one on two FDs, this way, your whole investment would not be affected.
