The major difference between short-term and long-term deposits is a duration for which a person invests in a scheme. 

With that said, here are some key benefits of each of them:

Short-term Deposit

• The investment tenure ranges from 7 days to 2 years

• Utmost safety on investment that remains unaffected by external market changes

• Attractive interest rates

• Returns on the deposits are taxable

Long-term Deposit

• Easy to get started with

• Loan against FD is possible

• Auto renewal facility available without any formalities

• Interest rates get more attractive as you choose longer tenure

Nomination facility is available on Fixed Deposit Receipt.

In case of Pre-closure of retail term deposits (less than Rs.2.00 crores), which have run for 7 days or above, interest to be paid at 1.00% less than the applicable rate (as on the date of opening of the deposit) for the period for which it has actually remained with the bank or contracted rate, whichever is lower.