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Banking

Bank deposit guide: How to compare fixed deposits

A fixed deposit holds money for an agreed term at a stated rate. A savings account usually offers more flexibility to withdraw. A fair comparison starts with when you may need the money and how interest is paid.

What to check before comparing rates

  • Tenure. Compare rates for the same term and deposit amount.
  • Interest payout. Check whether the deposit pays interest regularly or accumulates it until maturity.
  • Early withdrawal. Read the bank’s rules for early closure, including any revised rate and penalty.
  • Deposit insurance. Check that the bank is covered and understand how the insurer groups accounts held at the same bank.

Use the bank’s dated rate sheet and terms for the final comparison. The DICGC deposit insurance FAQ explains coverage and how deposits are grouped.