A deposit is one of the most tested small-savings instrument for retail investors. It is risk-free, making it one of the safest financial products. Well, not quite. What happens if the bank where you have parked your deposit gets liquidated or folds up due to mismanagement?
In such cases, your deposit is insured by the Deposit Insurance and Credit Guarantee Corporation Act (DICGC). The good news is that you do not have to pay any premium to insure your deposit against such events. The bad news is that the insured amount is capped at ₹1 lakh.
Here are some ways to increase the safety of your deposits.
Read the full article published originally on Hindu Business Line: 4 ways to beat falling cover for deposits