NEW DELHI : Bank fixed deposits (FDs) are usually the first port of call for those beginning their investment journey. Income certainty and capital protection features of bank FDs also make them immensely popular among investors with low-risk appetite and those investing to meet their short-term financial goals. Let us take a look at some of the pros and cons of investing in bank fixed deposits. The insurance cover is applicable on cumulative bank deposits, which includes fixed deposits, savings account, recurring deposits and current account, of up to Rs5 lakh per bank, per depositor in the event of bank failures. For instance, if an individual opens a bank fixed deposit of 2 years tenure at 6% p.a., the interest rate will stay the same till the end of 2 years tenure.

Source: Mint May 01, 2021 04:52 UTC