There are a variety of investment methods for fixed deposits, and the maturity period varies from seven (7) days to 10 years across banks and financial institutions.
FIXED DEPOSIT is one of the most popular avenues of investment as it guarantees the safety and security of your money. Fixed deposits not only provide higher returns than savings accounts or recurring deposits (RDs) , but they also maximize the investment benefits of the investor
There are a variety of investment methods for fixed deposits, and the maturity period varies from seven (7) days to 10 years across banks and financial institutions. Some banks also offer FDs for an extended tenure of up to 20 years
However, before investing in a fixed deposit scheme, you should thoroughly check whether the tenure offered by banks or financial institutions meets your goals, and choose accordingly.
- Before investing the money one should also compare the interest rate of return of different institutions according to the tenure and your financial goals.
- You should also know that bank deposits up to Rs 5 lakh are protected through Deposit Insurance and Credit Guarantee Corporation (DICGC) , a subsidiary of RBI.
- Thus, to cancel out the default risk, you can avoid exposure of more than Rs 5 lakh in a single bank through FD .
- You can split your investment across multiple FDs across different banks , which is the most reliable method, and make sure to keep the investment amount below Rs 5 lakh.
- You can invest in different FDs with different maturities , and reap the benefits as the FD interest rates are expected to rise.
- When you have multiple FD investments, in case of emergency, you can do one on two FDs , this way, your entire investment will not get affected.
