Many banks have fixed deposit interest ratesThis is the right time to invest in Fixed Deposits. Fixed deposit Offer a wide range of tenure options. Here are the banks that offer the highest Rate of interest On fixed deposits for a period of 1-2 years.

Fixed Deposit: Highest Rate FD with 1 year tenure

Fixed Deposit: Highest rate on FD with tenure of 2 years

Avoid premature withdrawals to maximize returns

The FD laddering method can help you get the most out of bank FDs, but care must be taken to avoid early withdrawals. The tenure and plan should ideally be chosen carefully.

If you are not sure about when you might need to withdraw money from your FD, look for institutions that do not levy early withdrawal penalties.

Reasons to invest in fixed deposits

according to

Website, below are some of the reasons to invest in fixed deposits:

• It is risk free and guarantees fixed returns.
• Fixed deposit interest rates are higher than those of other risk-free investment instruments such as Treasury bills or government bonds.
• Fixed deposits offer complete flexibility regarding the tenure of investment.
• The tenure of fixed deposits can vary between 7 days to 10 years. The investor can choose any time period for investing in Fixed Deposits.
• Investors can avail loan or overdraft against fixed deposit as and when required.
• It is a liquid investment; You can partially or completely break your fixed deposit as and when required.
• It protects you from the uncertainties of the markets and you can focus on your business or job by keeping your investments safe in fixed deposits.
• A 5-year tax saver fixed deposit is helpful for tax savings as the investor can claim tax deduction on the money saved in it under Section 80C of the Income Tax Act.