Need emergency money? Don't break fixed deposit, borrow against it

Loan rate is 100-200 basis points higher than the FD rate

• In case of an emergency, instead of breaking a fixed deposit (FD), you can get a loan against it.
• Banks usually lend up to 90 per cent of the value of your FD. The limit varies from one bank to another. 
• Loan against FD is given by banks as an overdraft facility.
• The rate on such loans is 1 and 2 percentage points  above the FD rate. The tenure is up to five years.
• If you fail to service the loan, the bank can foreclose your FD to recover its money.
• This loan is not available on five-year tax saving FD.