No, a Fixed Deposit (FD) does not directly reduce your home loan interest rate. The interest rate on a home loan is determined by the lender based on various factors like market conditions, creditworthiness, and loan tenure. However, some banks offer loan interest rate concessions or special offers to customers who maintain a high-value FD with them. While it won't directly lower your interest rate, having an FD might make you eligible for certain preferential treatment or benefits from the bank when negotiating your home loan terms.