Are They Really Safe?
Do you have some surplus cash in hand? Are you making it sit idle in your savings bank account? Well, then you are losing out.
What would be a favorable option for you? Go and invest your money.
Opening a fixed deposit account is one of the most popular investment options owing to its safety.
But how safe are your FDs?
Let's find out.
If you are opening an FD account with a bank, there is nothing to worry about. The Reserve Bank makes it compulsory for the banks to have deposit insurance. All your deposits up to Rs 5 lakhs will get covered under this scheme.
However, if you are investing with an NBFC, it is always better to check their credibility before making a final decision.
Well, if the bank fails, you will only get back up to Rs 5 lakhs including your principal amount and interest payments. So, what if you have higher deposits with the bank? They are not safe.
So, it is better to keep a maximum of Rs 5 lakhs in a particular bank. That will insure you do not lose your hard-earned money.
Haven’t you heard of the saying that you should not keep all your eggs in the same basket? You might invest in mutual funds and bonds. However, fixed deposits can be an excellent way to diversify your investment portfolio.
Moreover, it is also a far safer option than other forms of investment.
Stocks and mutual funds are prone to ups and downs in the market. Your returns are not predictable. You might gain a handsome sum. But who knows? You may also lose your precious money.
Fixed deposits provide you with a guaranteed return on maturity. Moreover, you don’t have to constantly think about the amount you will get. You will already know that beforehand. Isn’t that super convenient?
Even though the returns are not as high as other forms of investment, you can vouch for their safety.
FD interest rates range from 5% to 6.5% per annum. Senior citizens can get higher rates on their deposits.
Moreover, it is better to invest for the long term, if you wish to get higher interest rates.
PNB Housing Finance offers several exciting schemes on fixed deposits. You will also get lucrative interest rates.
If you are still in doubt about investing in an FD, you must go for it. There will be no safer option to grow your money in the long term. Just remember to check the interest rates offered by your lender. Also, don’t keep deposits beyond the maximum limit for insurance.
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