MUMBAI : Bank fixed deposits (FDs) are still a popular investment option, not only among retirees looking for a steady stream of income but also among risk-averse investors. Over-exposure to FDs, on the other hand, is not a good thing, and you should evaluate your asset allocation and goals before deciding how much money to put in them.
For example, using FDs to save for your child's education that is 15 years away may not be successful because the post-tax interest rate of an FD may not give you a real return (return above the rate of inflation), but an FD can help if you want to take a vacation in two years.
Compare the interest rates on offer before deciding on an FD. The banks with the highest FD rates for deposits up to Rs 1 crore over various tenures are listed below.