Bangalore: It is a good time to open a FD (fixed deposit) as the interest rates are reasonably good right now. But there are few key points which you need to know before investing in any of the FDs available in the market, reports Ramya R. Iyer of ET Bureau.
1. FDs Are Not Entirely Safe
Investing in a FD doesn’t mean your money is safe. Suppose if you have Rs.5 lakh to invest, break it into 3-4 chunks and invest in various fields. This will not only safeguard your money but also will provide you another advantage that is in case you need cash for an emergency, you won’t have to break the entire fixed deposit. What happens in a FD is if you break it, then you will have to pay the premature withdrawal penalty.
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