Fixed deposit interest rates are entirely variable between different financial institutions, but they typically range from 4 percent to 11 percent. Many banks and financial institutions, such as ING Direct, offer rate calculators that allow customers to choose their investment term limit, deposit amount and desired interest rate to view the fixed deposit rates at several banking services companies.Continue Reading
Fixed deposit accounts are typically only referred to as such in India and Pakistan. In western countries, such as the United States, the United Kingdom and Canada, they are either called "term deposits," "time deposits" or "bonds." These accounts lack the liquidity of conventional "certificate of deposit" accounts, which means that customers cannot withdraw their funds before a certain date without paying a penalty. However, to compensate for this lack of liquidity, many term deposit accounts offer higher interest rate payouts than traditional checking accounts.
As of 2015, the fixed deposit industry is highly deregulated in India, so banks in that country frequently offer fixed deposit rates between 10 percent and 11 percent. The industry is more heavily regulated in the United States, which means that the average term deposit rate fluctuates between 6 percent and 8 percent. Interest rates are higher for these types of accounts because banks know they have access to the money for a certain period of time, which allows them to invest the deposit in a higher-gain financial product class.Learn more about Personal Banking