Can Fixed Deposit Be Kept as Collateral for a Loan?

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Summary You can easily use a fixed deposit as a collateral to secure a loan. The loan amount you can get against your FD is usually dependent on your FD’s value, bank’s terms and conditions and loan type. Anyone with an existing FD can use it as a collateral to obtain a loan. Loans against…

What is Fixed Deposit Laddering & How Does It Help?

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Summary: Fixed deposit laddering is an investment strategy where you spilt your money across multiple FDs with different maturity dates. It serves as a regular income stream whilst allowing higher liquidity and flexibility to use your funds whenever you need. FD laddering helps to mitigate reinvestment risks and meet your short or long-term financial goals….

FD Insurance Limit Explained: How the ₹5 Lakh Deposit Insurance Works and Why It Matters for Investors

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Summary DICGC protects eligible bank deposits up to ₹5 lakh per depositor per bank, including both principal and accrued interest. The limit applies to the combined value of eligible deposits held with the same bank, so spreading deposits across different insured banks can increase the amount covered. Fixed Deposits (FDs) have long been a preferred…

Loan Against FD vs Breaking FD: Which Is Better When You Need Money Urgently?

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Summary A loan against FD can be a smarter way to meet short-term cash needs without losing the interest and compounding benefits of your deposit. Breaking the FD may still make sense when you need the full amount, want to avoid repayment, or the FD is close to maturity. The better option ultimately depends on…

What Happens When You Break a Fixed Deposit Before Maturity?

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Summary Breaking an FD before maturity gives you quick access to funds, but it can lower your returns through revised interest rates, premature withdrawal penalties and lost compounding. Before closing the FD, it is worth comparing alternatives such as a loan against FD or partial withdrawal, especially when you only need funds temporarily. A Fixed…