The correct answer is Term Deposit. Fixed deposit means that the investor fixes some investment until given maturity date. The rate of interest in fixed deposits is higher than the regular savings account. The interest rate varies from 4 to 7. 5%. The tenure is between 7,15 or 45 days up to 10 years. The longer the term of deposit the more is the rate of interest but these days banks offer lower rates of interest in case of long periods. It also offers wealth tax and income tax benefits. This scheme is covered by Deposit Insurance and Credit Guarantee Corporation(DICGC). Additional InformationA savings account is an account where users can deposit savings with the bank and earn interest at the same time. A current account is an account where users can deposit money to carry out business transactions. A recurring deposit is a special kind of term deposit offered by banks that help people with regular incomes to deposit a fixed amount every month into their recurring deposit account and earn interest at the rate applicable to fixed deposits.