• Dividing your investment assets into different categories is a good way to grow your wealth without taking undue risk. Fixed deposit investments are a good choice if you expect to need the money within the next five years, since those fixed deposit investments can keep your money safe and ensure it will be there when you need it.
  
  

Interest Rate

• No matter how much or how little you have to invest, you want to get the best possible return on your money. Always shop for the best interest rate when seeking out a new fixed deposit, since even a small increase in the interest rate can boost your earnings over time. If you are looking for a CD, consider shopping not only at local banks but credit unions as well. You can also look to Internet banks, which can often provide a higher rate of interest due to their lower administrative and overhead costs.
  
  

Length of Term

• Whether you choose a CD, a bond or another type of fixed deposit investment, you are essentially loaning your money to the institution you are investing in. The length of that loan term will vary, and if yu are willing to tie your money up for a longer period, you might be able to get a higher interest rate. For instance, the interest rate on a five-year CD is generally higher than the interest rate on a one-year CD. The tradeoff, of course, is that the five-year CD requires you to tie your money up for a longer period.
  
  

Safety of Principal

• The return on your money is important, but the return of your money is even more critical. Consider the safety of the investment before putting any money into a fixed deposit. If absolute safety is your main goal, investments like certificates of deposit and government bonds can give you a secure return on your money with no risk of loss. If you are comfortable with a bit more risk, corporate and municipal bonds can give you a higher return, albeit with more risk as well. Even with high-grade corporate and municipal bonds, there is always a small risk that something will go wrong and the bond issuer will not be able to pay back your investment.
  
  

Minimum Deposit

• The best fixed deposit investment in the world will do you no good if you cannot meet the minimum balance requirements. Always check the minimum balance requirements for any CD, bond fund or government bond you plan to invest in. Knowing how much you have to invest will help you find the best investment for your needs.