Knowing the in and outs of Fixed Deposits

Fixed deposits are considered a security for future by maximum number of citizens. This facility provided by banks acts a support for the time of time.

If the savings account is opened for frequent needs, then the deposit amount has to be left for a fixed amount under Fixed Deposit ie FD. In this period, the bank pays interest on deposits. Thus the purpose of FD is to save for dealing with a particular situation. However, the withdrawal of FD money is not allowed before the scheduled time, but it can be removed in special circumstances. It is also called breaking a FD. For this, the bank can recover the penalty.

Before making the FD, people should know that money deposited there is not completely sealed. Corporate deposits are unsecured loans, which have no guarantee. In case of banks, the Deposit Insurance and Credit Guarantee Corporation (DICGC) guarantees a maximum of one lakh rupees for a customer and this rule is applicable to every branch of banks. In such a case, if anyone needs to invest 3 to 4 lakh rupees, then it is better to invest this amount in three or four places in different banks.

That will provide two types of benefits. The first thing is that the full amount of the money will be safe and the other advantage is that if there is any need to break the FD in any emergency after having an FD then any one of those can be broken and used.
This will reduce the loss due to breaking the FD.