New Delhi, May 10 -- Fixed deposits are considered one of the safest investment options for conservative investors who are seeking stable and predictable returns. Unlike market-linked instruments such as stocks and mutual funds, FDs offer a fixed rate of interest for a predetermined tenure.

There are two types of FDs, cumulative and non-cumulative, which are classified based on how the interest payout is done. Here's how they differ:

Among major lenders in India, including HDFC Bank, the States Bank of India (SBI), ICICI Bank, and Axis Bank, fixed deposit interest rates generally range between 6 and 7.25% annually, with senior citizens typically receiving an additional 0.5% on investments. Meanwhile, many small finance banks tend to off...