Most of the people who want to invest in FD want to get safe and guaranteed returns on their invested amount. FD is a very good option for senior citizens, but do you know that FD (FD Investment Risks Updates) does not have all the benefits? It also has some drawbacks. Let us know about the drawbacks of FD.

Fixed interest rates are available-

Fixed interest rates are offered in FD. Fixed interest rates i.e. the interest rates fixed by the bank remain fixed. There is no change in their interest rates. This is one of its drawbacks. Apart from this, other investment options like stocks or mutual funds offer more interest than FD.

Penalty charges on premature withdrawal-

One of the biggest disadvantages of FD (FD ka risk kaise hataye) is that if you withdraw money from FD before the stipulated period, then for this you will have to pay pre-withdrawal charges.

You do not get the benefits of the market boom-

Interest rates are fixed in FD, due to which you keep getting interest at that rate from beginning to end. Even after the market boom, your return (Disadvantage of FD) remains fixed and you get a return only at a fixed interest rate, in which there is a possibility of loss.

Investment amount gets locked-

On investing in FD, your money gets locked for the stipulated period (Lock-in period). The lock-in period means that you will not get your money till the end of the FD period. Even if you need money in an emergency, you cannot withdraw money. Let us tell you that most of the fixed deposit penalty charges are such that if you break them, you may have to pay a very hefty penalty.

Tax is levied on interest-

You must know that whatever interest you get on the amount invested in FD, tax has to be paid on it (Tax deduction in FD). Whatever interest you get on the amount invested in FD, the tax will have to be paid on it.

Interest should be more than the inflation rate -

If you invest in FD, then the return on it should be more than the inflation rate, only then there is benefit in investing in FD. Usually, the fixed deposits of the bank are not more than the inflation rate, so in such a situation, if FD (Invest in long-term FD) does not give a return that beats inflation, then there is no benefit in investing in it.

Capital gains benefits are not available-

Supreme Court told- on which property of the father the son does not have rights.

Along with this, you are not able to take advantage of any capital gains from FD investment. Let us tell you that it has disadvantages in long-term FD. Although investment in FD is secure in terms of investment, there is a risk of banks going bankrupt. There is no guarantee that your FD will be saved if the bank sinks.

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