New Delhi: 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.


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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.