New Delhi, March 13 -- Investing into a fixed deposit gives consistent and safe returns to investors. No wonder then they are extremely popular among conservative investors who do not wish to risk their investment in stocks.

Another point worth noting is that the tenure of fixed deposit (FD) make a considerable difference to the returns it accrue. In other words, high returns are typically offered on long duration term deposits.

Investors generally opt for a bank which offers the highest interest rate since a small difference of even 50 basis points matters a lot. For instance when you invest Rs.5 lakh in a fixed deposit, a higher return of 50 basis points leads to an extra income of Rs.12,500 over a five year period. And if the amount ...