Should I invest the entire amount in a single FD

[samkapoor77]

I have idle funds of Rs. 8 lakhs savings account which I want to convert to FD. I have savings account with Bank of Baroda. Should I create single FD or divide the amount in to number of FDs? Please advice

[Sameer Kapoor]

In my view, splitting the amount in 8 FDs of Rs. 1 lakh each would be a better choice. Reason 1 ? FDs for a maximum of Rs. 1 lakh are insured against bank’s bankruptcy. Reason 2 ? In case of need of money, you ca do with breaking a single FD rather than breaking a FD for Rs. 8 lakhs.

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