New Delhi, Aug. 25 -- The equity markets in India have lagged over the last 12 months, with the benchmark Nifty 50 index slipping 3.32%. As a result, many investors are turning back to fixed-income investment options such as fixed deposits, bonds and other money market instruments.

Fixed deposits (FDs) remain a popular choice for predictable returns and capital safety. At present, several leading public-sector, small finance and private banks are offering rates of up to 8.50%.

Yet, health emergencies, urgent financial needs or shifting priorities often push individuals to break their FDs before maturity. Before making a premature withdrawal, it is vital to understand the costs and plan carefully.

Here are several important factors that...