Question 1

Is this FD insured by the RBI?

Accepted Answer

No, this FD isn't insured by the RBI as these are Non-bank FDs. However, the creditworthiness of the FD provider is rated very highly, which translates to low risk. Nonetheless, in any unfortunate instance where the FD provider faces bankruptcy, there is a risk of losing your investments.

Question 2

What happens when the FD tenure is over?

Accepted Answer

For cumulative plans (where you get all the interest at maturity): When the tenure is over, you'll get the invested amount plus the total interest.

For non-cumulative plans (where you get interest at a certain frequency, such as monthly): When the tenure is over, you'll get the invested amount plus the last interest payment.

Note: The payout usually takes 2 working days and gets credited to the bank account you used while creating the FD.

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