New Delhi, March 3 -- Fixed deposits are a safe and reliable investment tool for conservative investors to earn consistent long-term returns. Compared to simply parking your money in a savings account, a fixed deposit or FD, allows you to allocate a lumpsum amount to a financial institution for a fixed period of time and for a fixed rate of interest. FDs also tend to have higher interest rate that a savings account.

FDs are great financial tools when saving for specific goals and can be automated so that the deductions from your bank account ensures a neat, fixed amount put aside each month. At the end of tenure, ranging from 7 days to up to 10 years, you can choose to have the principal and interest deposited into your account or renewe...