A variation of fixed deposits is known as special fixed deposits, which offer unique features and potential benefits.
Fixed deposits have long been a popular investment choice for risk-averse investors. A variation of this traditional financial instrument is known as special fixed deposits. These deposits offer unique features and potential benefits.
Special fixed deposits (SDFs) are a type of fixed deposit offered by banks that typically give higher interest rates than regular fixed deposits. These are often customised to cater to specific groups of investors such as senior citizens or those with large deposits. SDFs may also have other features, such as the option to choose your interest payment frequency or the ability to withdraw your money before maturity without penalty. However, this may vary from bank to bank.
Some common characteristics of special fixed deposits include:
Read More: 7th Pay Commission Latest News: DoPT says what you should not do for Children Education Allowance
Higher Interest Rates
Special fixed deposits often provide higher interest rates compared to standard fixed deposits. This can be particularly attractive to investors seeking enhanced returns on their savings. For those seeking a regular income stream, special fixed deposits with customised interest payout frequencies might be suitable.
Tenure Flexibility
Banks may offer special fixed deposits with flexible tenure options, allowing investors to choose the duration that best aligns with their financial goals.
Customised Interest Payouts
Depending on the bank’s terms, investors might have the option to receive interest payouts on a monthly, quarterly, or annual basis, providing a regular income stream.
Read More: Salary, pension dates advanced for Central Government Employees and pensioners in these states
Senior Citizen Benefits
Some special fixed deposit schemes may offer additional interest rates or benefits for senior citizens, catering to their specific needs. Seniors looking for higher returns and specific benefits might find certain special fixed deposit schemes tailored to their needs.
Partial Withdrawals
Certain special fixed deposits permit partial withdrawals before maturity without incurring significant penalties. This liquidity feature can be beneficial for investors who may require access to their funds in case of emergencies. Also, investors requiring periodic access to funds may find the option of partial withdrawals appealing.
If you are looking for better returns compared to traditional fixed deposits while maintaining a certain level of safety, special fixed deposits could be worth considering. However, the decision to invest in special fixed deposits depends on an investor’s financial goals, risk appetite, and investment strategy.
The table below help you compare the interest rates offered by more than twenty banks on applicable tenors. You can compare these options and take a decision based on your financial goals.
Read More: NPS: Here’s why you should choose National Pension Scheme for your retirement portfolio
Special Fixed Deposit Interest Rates
Note: Data as on respective banks’ website on 22 Aug 2023.
Interest rate on special deposits i.e. higher rate on FD for a specified day/period is shown in the table; Deposit (amount below Rs 2 Cr) for selective public & private banks considered for data compilation. If there are multiple special tenor FDs offered by a bank, only the tenor for which highest interest is offered is considered.
