New Delhi, Sept. 29 -- We have often heard from our parents that creating a fixed deposit (FD) with a bank is one of the safest ways to grow our money. While FDs offer several advantages, including a fixed interest rate, maturity date, and maturity amount, they also carry risks, such as tying up a large amount of money with a single bank.

Have you ever wondered what happens to your money if a bank fails? According to a Moneycontrol report, the Deposit Insurance and Credit Guarantee Corporation (DICGC) provides insurance cover of up to Rs.5 lakh per depositor, per bank, for eligible deposits. This limit covers both the principal amount and the interest earned. For instance, if you hold a Rs.10 lakh FD with a single bank, the entire amount...