Why Fixed Deposit is more riskier investment than you think

When you invest in a Fixed Deposit, you lock your money in the bank thinking it to be safe there.

But the fact is the bank in turn may lend your money to an extravagant person (someone like Vijay Mallya) who spends your money goes insolvent and declares himself incapable of returning the loan.

And after many years when you unlock the bank in search of your wealth, what you get is nothing
better than the old hag because the value of your fixed deposit is hardly enough to take care of your expenses.

It has been others who have enjoyed your money to meet their extravagant needs and reduce the value of your money by their defaults.

(When a section of society defaults, the country has to recapitalise the banks and to that extent print currency which in turn causes inflation and brings down the value of your money)

This is the reason, the fixed income we get by way of investing in Fixed Deposit is nothing but 'risk' shrouded in a false skin known as 'safe'.

So consider other options