Is Investing In A Bank Fixed Deposit A Worthwhile Option? Find Out

Wondering if you should invest in a fixed deposit at a bank? Here's the information to help you make an informed decision

At a time when equity markets are facing a lot of heat due to the COVID-19 pandemic, with volatility dominating, investors are forced to look for a safe haven wherein they can save capital and get assured returns. In their search for safer options, they are turning to the option that has been the first choice across generations — fixed deposit (FD). However, despite its image of a safe haven for investors, fixed deposits come with their own share of investment risks that all investors must be aware of before choosing their option. The following points must be taken into account before opting for a bank fixed deposit. 1) Park Your Money With A Reputed Bank In case you wish to put your money in an FD, it's better to do so with a reputed bank and not get lured by high rates offered by banks that are relatively new. To put it simply, interest rates shouldn't be the sole guiding factor while choosing a bank for an FD. 2) Real Return Rate From FD's Are In The Negative