FD Interest Rates: Investing is a great option to secure the future. Even though there are many investment options available today, Fixed Deposit is still the most preferred and reliable investment option for many people. Investing in FD gives a guaranteed return. People feel that their money is 100 percent safe by investing in FD. But is it so? There are many things done by banks, which are not told to FD investors.

Banks never tell these things-

1) How much of your money is safe

Investing in FD is safe, but if a bank is declared a defaulter, then in such a case investors may suffer losses. Because in such a situation, only Rs 5 lakh of the investors investing in FD remains safe. DICGC bank deposit insurance guarantee is given only up to Rs 5 lakh.

You should also keep in mind that this guarantee of Rs 5 lakh is not only for the FD money but also includes the amount deposited in the savings account, current account, or RD account in your name in that bank. That is, you will get a guarantee of up to Rs 5 lakh together. If the amount is more than this, your money is lost.

SBI has made senior citizens happy, announced bumper interest on FD of 444 days

2) Tax will have to be paid on interest

While filing an income tax return (ITR File), you also have to pay tax on the interest received on FD. However, apart from FD, there are many such schemes, in which no tax is levied on the interest received on investing.

3) There can be a loss on interest received from FD

On investing in FD, the same interest is received throughout the period. In such a situation, if you invest in FD in the long term, then you may suffer a loss in it. Even if the interest rate on FD is increased by the bank later, many times you do not get the benefit of it.

4) You may have to pay a penalty

Investment in FD is done for a fixed period. If the money is withdrawn before that, you may have to pay a penalty. Penalty may be different in all banks.

Many other investment options are available.

Investment in FD is considered safe as long as the bank does not default. But before investing, you should be aware of other investment options available in the market. Like mutual funds, in which investors can get a return of 12 to 20 percent per annum.

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