Fixed deposits (FDs) are a favored investment option for conservative investors in India, providing predictable returns that are influenced by the repo rate set by the Reserve Bank of India (RBI). Currently, major banks such as HDFC Bank, State Bank of India (SBI), ICICI Bank, and Axis Bank offer FD interest rates between 6.05% and 7.25%. For instance, a ₹1 lakh investment in a three-year FD can grow to approximately ₹1.20 lakh to ₹1.23 lakh at maturity, while over five years, it can reach around ₹1.34 lakh to ₹1.41 lakh. For a ₹5 lakh investment, the growth can be from ₹6.79 lakh to ₹7.05 lakh over five years, and for ₹10 lakh, it can increase to about ₹14.10 lakh. However, actual returns may vary based on compounding methods and tax deductions. Interest earned from FDs is taxed under 'Income from Other Sources,' and TDS is deducted if the interest exceeds ₹50,000 for regular depositors. Investors should compare rates and consider tenure to maximize their returns.