Among many accounts that are introduced in Indian banking system, one such is the fixed deposit account which offers guaranteed return and is considered as safe instrument.
One of the major reasons why our parents and many in our generation would like to have this investment pool, is because of it's safety features.
Also, having a fixed deposit account supports in getting a loan. A person can borrow up to 90% of the fixed deposit amount from their bank.
Another advantage of FD would be it's flexible maturity date, as one can invest in them for a time frame of six months to as long as 10 years or even more period.
According to GoodReturns report, one can invest in FDs, if their risk appetite is very low. On the other hand, if you are risk averse stay with fixed deposits as the advantages far outweigh the disadvantages.
Going ahead, the report added, if you are over 50, your ability to take risk would be low. At such a time it is best to stay invested in fixed deposits.
But considering this is a matter of money, it is always best for some studies in investment under FDs, because what if something were to happen to the bank? It could close or have its license cancelled, or be liquidated. What would happen to your fixed Deposit then?
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