Fixed deposits have always been a vital part of an investor's portfolio because of the assured returns it offers. Traditionally FDs have been plain vanilla products but nowadays amidst cutthroat competition, banks have modified these keeping in line with the customers' requirements. Some interesting deals available in the market are described below:

Insurance

Some FDs have insurance attached to them. In such a case the basic product remains the same with an additional benefit of insurance. But these depend on the deposit amount and maturity.

For instance, a bank may give a free accident cover amounting to Rs. 5 lakh on a three-year deposit of Rs. 25,000 with a yearly interest of 8 percent. This increases the value of the product.

Many banks provide accident insurance only. The sum assured varies between Rs. 3 lakh and 7 lakh. Usually, such a cover has a number of clauses attached to it. Such policies should not form a part of your overall insurance needs.