India, Aug. 19 -- Fixed deposits are a widely preferred savings option for those looking for stable and predictable returns. However, FD interest rates can differ depending on the bank, deposit tenure and customer category. Understanding how these rates work, what influences them and how frequently they change can help you make informed investment decisions.

The annual interest rate of a fixed deposit account is the annual percentage return of a bank. The depositor receives interest on the lump-sum amount placed in a fixed deposit account for specific period. The interest rates are different based on the amount deposited or the tenure chosen by the depositor.

The interest rate of a fixed deposit is set by a bank for different tenures, t...