If you are looking to tap into the rising interest rate regime, then it’s the right time as some banks are offering special fixed deposits (FDs). However, the special deposits are on irregular tenors rather than specific months or years and effectively guarantee higher interest rates than traditional FDs.
Since May last year, the Reserve Bank of India has raised the repo rate by a total of 250 basis points to 6.50 per cent. This has prompted banks to raise their fixed deposit interest rates this year to attract depositors.
ALSO READ: Tax Saving Tips: Know Why You Should Submit Supporting Documents To Save Tax
Here are five special FDs from various banks, including SBI, that will expire in March. Those who want to earn a decent return from fixed deposit income can go ahead and lock in their money before the scheme expires.
SBI Special FDs
India’s largest lender State Bank of India (SBI) introduced a specific tenor scheme dubbed “400 days” (Amrit Kalash) on February 15, 2023, with an interest rate of 7.60 per cent for senior citizens and 7.10 per cent for general public. This special deal is active until March 31, 2023, said SBI.
Also, note that the special deal is valid for senior citizens who book new fixed deposits or renew existing ones within the aforementioned period. Non-Resident Indians are not eligible for this offer.
HDFC Bank Special FD
Private sector lender HDFC Bank launched “Senior Citizen Care FD,” a special term deposit product for elderly individuals, on May 18, 2020. This special deposit offer is valid from May 18, 2020 to March 31, 2023. This is also for elderly people who want to book a fixed deposit of less than Rs5 crore for a term of 5 (five) years and 1 day to 10 years an additional premium of 0.25 per cent over and above the existing premium of 0.50 per cent.
Indian Bank Special FD
On December 19, 2022, public sector lender Indian Bank launched a special retail term deposit product called “Ind Shakti 555 Days” with higher interest rates for both the general public and senior citizens. “Special Retail Term Deposit Product “IND SHAKTI 555 DAYS” has been launched w.e.f 19.12.2022 offering a higher rate of interest for investment starting from Rs.5000 to less than 2 Crore for 555 days in the form of FD/MMD with callable options. Scheme Valid till 31.03.2023,” according to the Indian Bank website. On this special fixed deposit, non-senior citizens will get an interest rate of 7 per cent and senior citizens can earn as high as 7.50 per cent.
IDBI Bank Special FD
The private sector lender IDBI Bank introduced the “IDBI Naman Senior Citizen Deposit,” a special fixed deposit, for senior citizens on April 20, 2022. The program’s tenor ranges from more than a year to up to ten years, and it is available until the end of 31st March 2023.
Under this scheme, senior citizen residents will get an additional interest rate of 0.25 per cent over and above the existing additional rate of 0.50 per cent annually, taking the total benefit to 75 bps for senior citizens over and above the standard rates. The additional rate will be available on new deposits registered as well as deposits renewed during the offer period.
Punjab & Sind Bank Special FD
This public sector lender is offering four special fixed deposit schemes, PSB Fabulous 300 Days, PSB Fabulous Plus 601 Days, PSB e-Advantage Fixed Deposit and PSB-Utkarsh 222 Days for depositors. All these schemes are going to end on 31st March 2023, according to the official website of the bank.
PSB Fabulous 300 Days as the name suggests comes with a tenor of 300 days only, under which the bank is promising an interest rate of 7.50 per cent p.a for the general public, 8.00 per cent for senior citizens and 8.35 per cent for super senior citizens.