New Delhi, April 14 -- If you are planning to open a fixed deposit (FD) with a bank, it is recommended to compare the interest rates offered by different banks. Although most banks offer similar interest rates on their term deposits, even a marginal difference can help you save more. For instance, if you receive an extra 50 basis points on an FD of Rs.10 lakh, your extra income will be Rs.5,000 in a year. And if you have locked the FD for a period of three years, the extra savings will rise to Rs.15,000.

Meanwhile, it is important to note that RBI on April 9 cut its repo rate by 25 basis points, thus incentivising banks to cut their FD interest rates. Therefore, if you plan to lock your money in an FD, you can do so as soon as you can. ...