Liv Fixed Deposit

This deposit pays 2% a year on every tenure up to twelve months, and 1.5% on the 24-month tenure. The rate does not move with your plan, so Liv Max makes no difference to it.

The Instant Interest deposit pays 2.25% on Classic and up to 3.5% on Max with a salary transfer, over a tenure of a year or less. Unless you need a payout schedule or a tenure beyond twelve months, that product pays more at every plan level.

Early withdrawal is permitted with no fee. Interest is recalculated at the booking-date rate for the elapsed period, less a 1% a year penalty. Partial withdrawal is not offered; the choice is the whole deposit or none. Interest already paid on a monthly schedule is part of that recalculation, so an early exit from a long deposit costs more than from a short one.

Money that might be needed back is better left in a Goal Account, which stays reachable and carries no penalty.

The payout frequency is chosen at booking and cannot be changed afterwards. Monthly, quarterly and half-yearly options are available. A monthly payout turns the deposit into an income stream, which suits covering a recurring cost. A half-yearly payout leaves more of the money with the bank between payments and produces fewer, larger credits.

If there is no specific use for the interest as it arrives, the frequency is a preference rather than a financial decision. If there is a use, match it to the bill.