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FDs are the favourite form of investment for many due to the fact they are secure and have a guaranteed rate of return. Since there is a wide market with so many banks and other related financial institutions providing the fixed deposit service, choosing the best one can be a little demanding. In the following article, let me simplify the guide that would help you arrive at the right fixed deposit with elevated interest rates. Understand What a Fixed Deposit Is A fixed deposit is an investment product that involves placing of cash deposit in a bank for a specified period at a definite interest rate. By the end of the tenure of the company, all that is given back to you is the original amount plus the interest. FDs are safe avenues for investments as they are not bound by forces of supply and demand. Factors to Consider When Choosing a Fixed Deposit 1. Interest Rates The interest rate is the most crucial factor. Higher interest rates mean higher returns. Compare the interest rates offer

Fixed deposits are currently giving interest rate returns that are quite low. Investors, therefore, are always on the lookout for options that they can use to enhance returns without increasing their risk exposure. The obscure investment tool that has grabbed the attention of the market recently is knocking at your door – the one with a terminal interest rate of not less than 9.7%, you won't look at your fixed deposit options any further. Spectacularly, the popular debt investment tool generates fair income, unlike its precarious counterparts. As a fixed-income investment, the bond market rivals the monetary market in terms of reliability of return, which makes it an appealing instrument for risk-averse investors. However, it is not completely clear what this miraculous Fix Deposit investment is. Take it down! It is none other than a Sovereign Gold Bond (SGB) offered by the Government of India. To offer a semi-annual rate of 9.7% per annum, payable in gold bullion, the SGB becomes