Fixed Deposits: Should you park ₹10 lakh in one FD or split it? Pros and cons explained

Under the Deposit Insurance and Credit Guarantee Corporation scheme, deposits are insured up to ₹5 lakh per depositor per bank, including principal and interest.

Investing ₹10 lakh in a single FD offers convenience but risks full premature closure penalty if partial funds are needed early.

Splitting ₹10 lakh into smaller FDs provides financial flexibility and allows partial withdrawals without penalty on the entire amount.

Maturity amount is identical whether investing in one or multiple FDs if interest rate and tenure are the same.