Fixed Deposit Rates in India
About Fixed Deposits in India
Within India, a fixed interest investment product offered by banks as alternative to savings account are most often called fixed deposits but occasionally term deposits as well. This product is similar to others offered by banks around the world but with different name conventions such as time deposit in China or certificate of deposit in the United States.
The deposit rates set in India can differ between Indian banks and can rise and fall depending on many factors which may include bank liquidity and regulatory requirements, monetary policy rates set by the Reserve Bank of India (rbi.org.in), competition and net interest margin profitability by banks.
The rate for a fixed deposit account can tend to be higher than a savings account but be illiquid depending on the term/tenture.