New Delhi, March 2 -- Prior to investing in a fixed deposit, investors often compare interest offered by different banks. One might argue that most banks -- more or less - offer similar, if not same, interest on their term deposits.

However, one must understand that a difference of 50 basis points over a long period of time can increase the interest income considerably. Let us understand this with the help of an example. If your total fixed deposit amounts to Rs.10 lakh, an additional 50 basis point extra income leads to an additional income of Rs.5,000 in one year.

If the FD is for three years, the additional income spikes to Rs.15,000. And if the amount of FD is increased to double, this extra income - on account of extra 50 basis poi...