Major Indian banks introduced Special Fixed Deposits to provide senior citizens and common citizens with higher interest rates than regular fixed deposits. However, these special fixed deposits are being closed as a result of banks raising interest rates on regular fixed deposits for senior citizens. These unique FDs will no longer be available after March 31, 2023.
Here is a list of the interest rates offered by some banks through their special fixed deposits for individuals who are interested in investing in fixed deposits for higher interest rates.
Two unique FDs from State Bank of India (SBI) are available until March 31, 2023. The Vcare FD has an interest rate of 7.50 percent and additional interest rates of 30 to 50 basis points (bps). Meanwhile, the Amit Kailash Special FD offers senior citizens a 400-day interest rate of 7.60 percent.
HDFC Bank offers an exceptional FD for senior residents that began in May 2020, giving an additional loan fee of 0.25 percent. The FD has a 10-year term and a 7.75 percent interest rate.
Special FDs with tenures of 400 days and 700 days are available from IDBI Bank. Investors from the general public can get an additional interest rate of 0.25%, while senior citizens can get an additional interest rate of 0.50%, with a rate of 7.50% for seniors on this FD. Additionally, a 7% interest rate is available on a ten-year tenure FD.
Indian Bank offers a special 555-day FD with an interest rate of 7.50 percent for senior citizens and 7% for the general public. This FD allows for investments of between Rs 5,000 and Rs 2 crore.
The three special FDs offered by Punjab and Sind Bank include a 222-day FD with an interest rate of 8.85 percent, a 601-day FD with an interest rate of up to 7.85 percent, and a 300-day tenure FD with an interest rate of 8.35 percent or higher.
There are still some banks that offer higher interest rates through their special fixed deposits, despite the fact that these types of deposits are being phased out by banks. Before investing in any fixed deposit, it is essential to investigate the tenure, interest rates, and other terms.
