Compare Interest Rates: Top 12 Banks’ High-Yield Fixed Deposits

Fixed deposits (FDs) offer a low-risk investment option, guaranteeing a fixed interest rate on your initial deposit throughout the tenure, compounded periodically. One of the key benefits of FDs is the flexibility to choose varying durations, allowing efficient management of multiple deposits with different maturity dates.

You can start an FD with your existing bank where you hold a savings account or explore other banks offering higher interest rates. If opting for a new bank, additional KYC and documentation procedures may apply.

FDs provide a secure way to preserve a fixed sum of money and ensure a steady income stream. By depositing a lump sum into an FD account, you shield yourself from market fluctuations and earn a fixed interest rate over the agreed period.

Opening an FD account is convenient, available online or at a nearby bank branch. Existing savings account holders with the same bank can skip KYC and easily transfer funds.

Senior citizens can enjoy an additional 50 basis points interest on bank FDs, making it advantageous to open FDs in their names for higher returns. FDs are suitable for immediate financial needs or emergencies, offering quick access to funds. While it’s possible to take a loan against your FD, review terms and conditions carefully beforehand.

You have the flexibility to decide whether to transfer the FD amount to your savings account or renew it upon maturity, reinvesting as another fixed deposit. Breaking your FD before maturity incurs a lower interest rate and penalty deduction, so weigh the pros and cons carefully.

Compare interest rates and durations ranging from 1 to 5 years across leading banks to find the FD that best fits your financial goals.