Fixed Deposit: Be careful if you invest more than Rs 5 lakh in FD, know this important thing before investing..

FD Investment: FD is a better and safer investment option in today's time in less time. Due to getting good interest rates (FD interest rates), people also invest heavily in FD. Despite this, some reasons investing more than a limit (FD deposit limit) can also prove to be costly for the customer.

If this investment is made in FD of any period (FD tenure) of more than Rs 5 lakh, then it can be risky. Let us know what special things should be kept in mind before investing so much in FD.

There can be loss in this situation-

While on the one hand, there are many benefits of investing in FD, there can also be loss by investing in it. This loss can happen when the bank in which you have made the FD collapses. In such a situation, the big question is what will happen to the money deposited in FD if the bank collapses (bank collapse rules). You can know the answer to this question in detail here.

Only this much money is safe -

In case of bank collapse (insurance in bank collapse), the customer gets back only Rs 5 lakh from the amount deposited in the account or FD under the insurance coverage rules. More than this amount is not available in case of bank collapse (bank collapse rules). According to RBI rules, this insurance cover is given under the Deposit Insurance and Credit Guarantee Corporation (DICGC) Act. Earlier this amount was up to one lakh rupees.

Understand the loss from this example-

If you have made an FD of Rs 8 lakh (FD news) in a bank, then if the bank collapses, you will get only Rs 5 lakh including interest (Fixed Deposit Interest) and principal. In such a situation, the customer suffers loss of the remaining money and interest (fixed deposit loss).

These benefits are also available from FD -

- FD gives guaranteed return and the interest rates are fixed in it. One of its advantages is that the customer already knows the calculation of the amount to be received on maturity. It is also known how much loss will be incurred by breaking the FD (FD breaking rules).

- You can keep the duration of FD according to your financial plan and requirements. In most banks (bank FD news), the customer has the option of FD from 7 days to 10 years. The customer also gets the benefit of compounding interest on FD.

- If there is a sudden need for money after making an FD, then a loan (how to take a loan on FD) can also be taken on it. In such a situation, you will not even need to break the FD. You get almost the same loan (loan on FD) from the bank as the FD. But the interest on this loan has to be paid one percent more than the interest received on FD.

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