FD vs Life Insurance: Which Is Right for You?

When it comes to managing finances, choosing the right product can feel overwhelming. Two popular options—Fixed Deposits (FDs) and Life Insurance—are often considered by individuals looking to secure their future. While FDs are known for their simplicity and safety, life insurance offers financial protection and investment benefits. So, how do you decide which one suits you better? Let’s explore.

Understanding Fixed Deposits (FDs)
What Is a Fixed Deposit?
A Fixed Deposit (FD) is a financial instrument offered by banks and financial institutions where you deposit a lump sum of money for a fixed tenure at a predetermined interest rate. It's a safe and predictable investment option.
How Do Fixed Deposits Work?
You open an FD account, choose a tenure, and deposit your money. The bank pays you interest, which can be received periodically or at maturity, depending on the type of FD.