Fixed Deposits: These banks offer up to 6.5% interest for 1-year tenure

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A fixed deposit (FD) is one of the safest investment options which offers a fixed return. It is still a choice of investment for many middle-class Indians as it has negligible market-related risks and offers higher interest rates than a savings account.

The interest rate varies, depending on the FD tenure, deposit amount, and bank.

Term deposits are one of the conventional ways to invest money.  One does not need to open a separate account for an FD. The amount in FD after attaining the maturity period gets deposited in the bank’s savings account.

The account can be opened online as well as by visiting the branch. But due to lockdown restrictions and safety concerns, it is advisable that one goes for online mode. A person can open the account through his/her choice of banks’ website or app.

In case of visiting the bank to open an FD, the account holder will be required to fill up and submit a form at the branch.

If he/she doesn’t have a savings account and wishes to open an FD in a bank where they don’t hold an account, then the person will be required to submit certain documents like photo identity, address proof, etc, and complete your KYC. He/she has to submit these documents along with a filled-up and signed application form.

One also open multiple FD accounts. FD tenure can range from short-term to long-term depending upon the investment goal.

Here are the latest fixed deposit rates:

(These interest rates are for domestic term deposits of less than Rs 2 crore for Indian citizens except for RBL Bank which offers this interest rate on a deposit of up to Rs 3 crore)