As long as a bank runs into default (resulted from bankruptcy), you will loose every single cent in the bank. This will affect not only your returns but also your initial principal investment. Hence, with mediocre returns on your fixed deposits, it might be a smarter choice to start looking at other instruments with similar risk accompanied with better returns.
I would prefer putting my money in different banks (with good credit ratings of course) to diversify the risk by investing in the form of structured notes, which is currently available in the market. Returns are twice as good, especially during this period of interest rate slowdown. :)
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