FD Strategy: One Big or Many Small? Maximize Returns & Safety!

• Choosing between one large FD or multiple small FDs impacts flexibility and safety, not total interest if rates/periods are same.
• A single large FD offers simplicity but incurs full penalty if partially broken and limits DICGC insurance to 5 lakh per bank.
• Multiple small FDs provide flexibility: break only what's needed, incur penalty on smaller amount, and allow reinvestment at higher rates.
• Spreading multiple FDs across different banks can ensure full DICGC insurance coverage for larger sums.
• While multiple FDs offer control and risk reduction, they require more management due to various receipts and maturity dates.

Why It Matters: Multiple small FDs offer better flexibility, risk management, and access to funds than a single large FD.