How much interest can I earn on my Fixed Deposit?

The interest rate you earn on fixed deposits (FDs) is influenced by several key factors:

• FD Tenure: Generally, longer-term FDs tend to offer higher interest rates. This is often because longer commitments provide banks with greater stability for their lending activities and reduce the likelihood of premature withdrawals, improving their liquidity management.
• Customer Category: Certain financial institutions may provide slightly higher interest rates to specific customer segments like senior citizens and female investors, for FDs of the same tenure.
• Deposit Amount and Specific Schemes: While the total interest earned is directly proportional to the principal, some financial institutions may also offer some schemes for specific higher deposit amounts designed for certain tenures or investment volumes. These schemes might be time-limited or aimed at attracting a specific type of investor.

To sum it up, the interest rate on an FD is primarily determined by the investment tenure, the customer category, and the deposit amount, often with specific schemes offering potentially enhanced returns.