Fixed deposits are believed to be the safest investment options, a person can invest under fixed deposits scheme and he can be sure about the returns that he will get after the invested money has matured, but in that gives duration there are certain events that may occur which can make an investor uncertain about his investments in case of liquidation, cancellation of banking licenses or merger.
Under such circumstance Deposit Insurance Scheme by deposit insurance and credit guarantee corporation (DICGC) can keep the investor in high spirits. Fixed deposit of all the banks is insured by (DICGC) and more importantly the cost of premium is to be borne by the bank itself.
An investor can get up to 1 lac including principal and interest amount if any such situation arises, but if the person has also got some due pending on the lender to be paid then the amount will be deducted from the amount that the person is entitled to receive.
Investors also need not to get involved in the claim settlement procedure, everything will be taken care of by DICGC and hence a person can be sure about his returns, whatever the situation may be.
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