With the increasing frauds in the nationalized banks, investors have started to lose confidence in these banks and are concerned whether to go forward with an FD account in this or not.&nbsp; The answer to this is subjective. RBI governs these banks with strict rules and statutes especially after the irregularities found. Moreover, the deposits are protected up to Rs 5,00,000 by the DICGC i.e., Deposit Insurance and Credit Guarantee Corporation. These banks over the years have developed an excellent internal control system and framework to detect frauds, so yes, an investor can take comfort in these deposits. What an investor must keep in mind is the <a href="https://zfunds.in/m/fd-interest-rates">high-interest rates offering FDs</a> promised by small banks.&nbsp; Now another question that strikes is, are public sector banks more reliable than the private sector? Both are reliable and secure as they are governed and follow RBI rules and guidelines. Some private banks even have lower NPAs when compared to public sector banks.&nbsp;

How safe are FDs in nationalized banks. will I lose my money in case of default by my bank

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