Fixed Deposits vs Cash Certificates: Which is Better?


It is always a great choice to invest your hard-earned money in a safe option. Fixed deposits (FDs) and cash certificates (CCs) are common choices among investors when it comes to safe investment solutions. While they are both secure investment possibilities, there are a few differences that investors should be aware of before making a purchase.

We will look at the differences between the FDs and CCs provided by Federal Bank, one of India's top banks, in this article.

What is a Fixed Deposit?

A fixed deposit is a safe investment option where you can deposit a lump sum amount for a specific period, ranging from seven days to 10 years, and earn a fixed rate of interest.

At Federal Bank, you can start a fixed deposit account with a minimum amount of Rs.1,000. The interest rate will vary based on the tenure and size of the deposit. There is no maximum amount for this deposit and the interest and principal amounts will be directly deposited into your account.

What is a Cash Certificate?

A cash certificate is similar to a fixed deposit, but the interest rate offered is slightly higher. The minimum investment amount for a cash certificate is Rs.10,000 and the tenure can range from six months to 10 years.

Federal Bank's Cash Certificate offers an attractive investment scheme that will help you double your money in the shortest span of time possible and with no risks involved.

Differences between FDs and CCs

The primary difference between a fixed deposit and a cash certificate is the interest rate. Cash certificates offer a slightly higher interest rate than fixed deposits.

Additionally, cash certificates do not offer premature withdrawal options, while fixed deposits allow you to withdraw the funds before maturity, albeit with a penalty fee.

Benefits of Investing in FDs and CCs

Both fixed deposits and cash certificates offer a guaranteed return on investments and are secure savings options. You can choose the tenure of your investment based on your financial goals and the interest earned will be credited directly to your account.


Investing in safe options is crucial for every investor. The fixed deposits and cash certificates offered by Federal Bank are two such options. While both are secure investment options, they differ in terms of the interest rate and premature withdrawal features. If you are a risk-averse investor looking for a safe investment option, you can choose between FDs and CCs based on your investment goals.