What to compare first
- Interest rate for the exact tenure you want
- Monthly-interest option versus maturity payout
- Whether withholding tax is applied in your estimate
- The deposit amount you actually plan to invest
A bank can have a strong rate at one-year tenure and a weaker rate at two years. Another bank can look less attractive at short tenures but better at long tenures. That is why you should always compare the same amount against the same period.
Why payout type matters
Some people want monthly cash flow. Others want the maximum possible amount at maturity. These are different goals. A monthly-income FD can feel attractive if you want regular cash, but compounding may work differently from a maturity-focused option. You should decide the goal first, then compare the products that fit that goal.
Worked example
If you deposit LKR 1,000,000 for one year, two banks might offer rates that look close on paper. But the better choice depends on whether you want monthly income or a final maturity value. If one product pays out monthly and another allows more compounding inside the deposit, the end result may differ even with similar quoted rates.
A practical comparison checklist
- Choose the deposit amount
- Choose the exact tenure
- Choose monthly interest or maturity value
- Turn withholding assumptions on or off as needed
- Then compare across banks
FAQ
- Is the highest interest rate always the best option
- No. The best option depends on tenure, payout style, tax treatment, and your cash-flow goal.
- Should I compare monthly and annual products together
- Only if you convert them into the same practical outcome for your goal.
- Why should I recheck the bank page before investing
- Because listed rates can change and some rates depend on amount bands or product conditions.
Let users compare bank FDs using one amount and one period.
Compare Fixed Deposits