What is the advantage and disadvantages of fixed deposit?

While fixed deposits provide you maximum protection against uncertainty, they offer poor protection against inflation. For example, if your fixed deposit interest rate is at 3.5%, and the current inflation rate is 3%, the value of your money has effectively only increased by 0.5% (i.e. 3.5% – 3% = 0.5%).

Does fixed deposit really work?

Your fixed deposit in the bank works as the pledged security as the lender can fall back on it in any case you default or you fail to repay the loan back. So if you want to know how a loan against fixed deposit works, we can help you decode it.

What are the disadvantages of fixed deposits?

Disadvantages of Fixed Deposit Low Returns. Biggest disadvantage of investing money in fixed deposits is that its returns are low and if the inflation is very high fixed deposit investors are the worst hit as the return from fixed deposit may not be sufficient to cover the high expenses due to inflation.

What is the minimum amount for a fixed deposit?

You can open a fixed deposit account with us even with a minimum deposit of ₹10,000 (applicable for general customers). To open a fixed deposit account for minors, you only need to make a minimum deposit of ₹2,000. What is the minimum and the maximum period for which I can open a fixed deposit?