Special Fixed Deposits were introduced by major banks in India to offer higher interest rates to senior citizens and common citizens compared to regular fixed deposits. However, with banks increasing the interest rates on regular fixed deposits for senior citizens, these special fixed deposits are being closed. After March 31, 2023, these special FDs will no longer be available.
For individuals looking to invest in fixed deposits for higher interest rates, here's a rundown of the interest rates offered by some banks through their special fixed deposits.
State Bank of India (SBI) offers two special FDs that expire after March 31, 2023. The Vcare FD offers additional interest ranging from 30 basis points (bps) to 50 bps, with an interest rate of 7.50 percent. Meanwhile, senior citizens can avail an interest rate of 7.60 percent on the Amit Kailash Special FD for 400 days.
HDFC Bank offers a special FD for senior citizens that started in May 2020, providing an extra interest rate of 0.25 percent. The FD has a tenure of 10 years with an interest rate of 7.75 percent.
IDBI Bank offers special FDs with tenures of 400 days and 700 days. General public investors can avail an additional interest rate of 0.25 percent, while senior citizens can earn an extra 0.50 percent interest rate, with an interest rate of 7.50 percent for senior citizens on this FD. Additionally, a 10-year tenure FD offers an interest rate of 7 percent.
Indian Bank offers a special FD with a tenure of 555 days, offering an interest rate of 7 percent to common people and 7.50 percent to senior citizens. Investments between Rs 5,000 and Rs 2 crore can be made in this FD.
Punjab and Sind Bank offers three types of special FDs, with the first 222-day FD offering an interest rate of 8.85 percent, the second 601-day FD offering an interest rate of up to 7.85 percent, and the third 300-day tenure FD offering an interest rate of up to 8.35 percent.
While special fixed deposits offered by banks are being phased out, there are still some banks offering higher interest rates through their special FDs. It's important to check the interest rates, tenure, and other terms and conditions before investing in any fixed deposit.
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