Is a fixed deposit the safest investment option?

On the face of it, a fixed deposit might seem to be a very safe option considering that in equities there is often a loss of capital while this rarely happens in the deposit field. However, there is a risk involved in the process of investing in a fixed deposit. The risk is that of a credit default by the institution to which the money has been lent in the form of a deposit. If the financial situation of the borrower deteriorates then it might stop paying interest on the deposit and if the condition worsens further, even the capital amount might not be returned. This shows that there is a risk involved that does not make the deposit a fully safe option.