Fixed deposit vs term deposit: are they actually the same thing?
TL;DR: Yes, in almost every case a "Fixed Deposit" (India, Singapore, Malaysia, Thailand) and a "Term Deposit" (Australia, New Zealand) refer to the same basic product — you lock a lump sum with a bank for a fixed period at a fixed interest rate, and get it back with interest at maturity. The name is a regional convention, not a difference in the underlying product. In the US, the closest equivalent is usually called a Certificate of Deposit (CD).
What's genuinely the same everywhere
- You commit a lump sum for a fixed term (commonly 3 months to 5 years).
- The interest rate is locked in for that term, regardless of what happens to rates elsewhere.
- Withdrawing early usually costs you — either a reduced interest rate or an explicit penalty.
- It's about as low-risk as a savings product gets, since it's typically backed by the issuing bank and often covered by a government deposit-insurance scheme up to some limit.
What actually varies by country
| Market | Common name | What's genuinely different |
|---|---|---|
| India | Fixed Deposit (FD) | TDS (tax withheld at source) applies above a threshold |
| Australia / New Zealand | Term Deposit | Typically shorter common terms, rate resets are more frequently discussed publicly |
| United States | Certificate of Deposit (CD) | Often FDIC-insured up to a specific limit per bank |
| Singapore | Fixed Deposit | Rates often quoted per specific promotional tranche/tenure |
The one thing that's the same question everywhere
Whatever it's called locally, the real decision is the same: is the guaranteed, locked-in rate worth giving up the flexibility and (usually higher, but uncertain) return of something like a recurring investment plan? That trade-off doesn't change by country, even though the name does.
Compare it against the alternative
Our Compare Lab shows a fixed-deposit-style product side by side with recurring investment plans and other options, using the actual local terminology and currency for your selected region — so the comparison reads naturally no matter where you are.