1. IntroductionA fixed deposit [FD] is meant for those investors who want to deposit a lump sum of money for a fixed period; say for a minimum period of 15 days to five years and above, thereby earning a higher rate of interest in return. Investor gets a lump sum (principal + interest) at the maturity of the deposit.Bank fixed deposits are one of the most common savings scheme open to an average investor. Fixed deposits also give a higher rate of interest than a savings bank account. The facilities vary from bank to bank. Some of the facilities offered by banks are overdraft (loan) facility on the amount deposited, premature withdrawal before maturity period (which involves a loss of interest) etc. Bank deposits are fairly safer because banks are subject to control of the Reserve Bank of India.With investment avenues increasing by the day it ppi judicial review is quite easy to forget that until the reforms era kicked off in 1991; Indians had very limited means of investing their savings. While it is true that we have not yet seen any development on the lines of the more developed economies there are a number of instruments today that were unheard of amidst the lay investors just a short decade ago. On the one hand investors are still struggling to come to terms with the complex nature of some securities and on the other intermediaries are trying to raise the investors’ awareness. Stock favorites such as FDs are meanwhile enjoying a renewed burst of popularity. It is observed that in the past few years due to soaring stock markets and decrease in the interest rates for fixed deposits, fixed deposits were stopped to be the favorable deposits and very few people wanted to invest in the fixed deposit.