A large number of people in the country invest their savings in various sectors. It is worth noting that the money invested in mutual funds or the stock market is subject to market risks. However, there is a large number of such population in the country who prefer to invest their savings in fixed deposit schemes. Your money invested in a fixed deposit scheme is not subject to market risks. You get guaranteed returns by investing in it. This is a big reason, why most people invest their savings in FD. If you also invest in FD, then what are the disadvantages of the investment made in it? It is important to know about it. Today we are going to tell you about this. Let's know -

You do not get much return on investing in a fixed deposit scheme. Even though the money invested here is completely safe. At the same time, the return on the investment amount is limited.

The second biggest disadvantage of investing in FD is that your money gets locked in. That is, the money invested once in it gets locked for a long period. During this time you cannot withdraw money from it.

If you withdraw money from FD before the maturity period, then you have to pay a pre-mature penalty. Apart from this, the return you get on investment in FD comes under the purview of taxable income.

You get a fixed return by investing in FD. The interest rate is fixed while investing in FD, the return is received at the same interest rate till the end.

(PC: ISTOCK)