Whenever it comes to savings, the option of Fixed Deposit comes first in people's mind. People see fixed deposits as a safe investment. In such a situation, people's trust in this is increasing day by day. But do you know that it is beneficial for you to make many small FDs as compared to big FDs. If you do not know, then let us tell you why having a small fixed deposit is beneficial in comparison to a large FD.
Small fixed deposits are many times better than FDs of large amounts. If you look carefully, you can get good interest. But, before getting FD done, you should read its terms and condition very well. Only then should you make up your mind to invest.
So that's why small FD is beneficial
According to market experts, if you have lakhs of rupees, then instead of depositing it in fixed deposit, that amount should be divided into pieces and fixed deposit in different banks. The biggest advantage of this is that by getting FDs in different banks, you will get the benefit of different interest rates. On the other hand, if you suddenly need some money, you can take money by breaking small amount FD of any bank.
Understand the math of FD like this
Suppose a person named Gaurav has made an FD of Rs 1 lakh in a bank and Ravi has made 2 FDs of Rs 25 thousand each in 2 different banks. Now suppose Gaurav needs Rs 25,000, then he will have to break his FD of Rs 1 lakh. On the other hand, if Ravi needs money, he can fulfill his need by breaking one of his FDs. With this, his second FD will be absolutely safe.
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