Fixed Deposits: The Safest Way to Grow Your Cash Fixed deposits are banking’s simplest promise: lock away your cash and earn guaranteed interest. For savers who value certainty over speculation, they offer stability, discipline, and predictable returns. But the story goes deeper—why banks pay more, how deposits fuel lending, and where savers can truly benefit.

A fixed deposit is the plainest promise a bank can make. Lock away your money for a set period, and in return, you get a guaranteed return. It is designed for savers who prefer certainty over speculation. But why do banks pay more for fixed deposits than for ordinary savings accounts? The answer lies in how banking itself works. Logic behind fixed deposits At its core, banking is a balancing act between borrowing and lending. Deposits are liabilities; loans are assets. Banks attract funds through current, savings, and fixed accounts. Current accounts offer liquidity but no interest. Savings accounts pay…