Fixed Deposits (FDs) remain one of the most popular investment options, especially among conservative investors seeking guaranteed returns. Banks and other financial institutions often introduce special fixed deposits with customised rates. These special FDs usually offer attractive rates for specific tenures, allowing investors to earn higher returns compared to regular FDs.
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Typically, these special tenures range from 300 to 400 days or 555 days and offer higher rates than traditional deposits. For instance, banks might offer exclusive interest rates on FDs of specific durations to attract more depositors. Rates for these special FDs generally range from 6.5% to 8.5%, though senior citizens can receive additional interest (around 0.5% higher), enhancing their returns further.
One benefit of these special fixed deposits is the flexibility in terms of duration, which can help investors match their investment horizon more accurately. For example, if an investor has a financial goal approaching within a year, opting for a 400-day FD with a higher interest rate might be more beneficial than a standard one-year deposit. This provides a strategic advantage for those looking to gain optimal returns while planning for short- to medium-term financial goals.
Moreover, special FD schemes offer assured returns. This stability and safety make special tenure FDs an excellent choice for risk-averse investors or retirees who prioritise stable income. Some banks even allow partial or early withdrawals, subject to certain conditions, thus providing liquidity in case of emergencies.
However, before investing, it is essential to read the fine print and understand any penalties on premature withdrawals and the reinvestment options post-maturity.
Fixed deposits with special rates and tenures offer a great option for investors looking for stable, higher returns within a specific timeframe. They allow individuals to capitalise on special rates while enjoying the safety and predictability FDs provide, making them a versatile investment instrument. Take a look at fixed deposits offering special rates and tenures.
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| Banks | Interest Rate (%) | Special Tenor |
| PUBLIC SECTOR BANKS | ||
| Bank of Baroda | 7.3 | 400 Days |
| State Bank of India | 7.25 | 444 Days |
| Union Bank of India | 7.4 | 333 Days |
| Indian Overseas Bank | 7.3 | 444 Days |
| Central Bank of India | 7.35 | 444 Days |
| Indian Bank | 7.3 | 400 Days |
| Bank of India | 7.3 | 400 Days |
| Bank of Maharashtra | 7.4 | 333 Days |
| Canara Bank | 7.25 | 444 Days |
| Punjab and Sind Bank | 7.45 | 555 Days |
| Punjab National Bank | 7.25 | 400 Days |
| PRIVATE SECTOR BANKS | ||
| Kotak Mahindra Bank | 7.4 | 390 Days |
| Federal Bank | 7.4 | 777 Days |
| City Union Bank | 7.5 | 333 Days |
| Karur Vysya Bank | 7.6 | 760 Days |
| Karnataka Bank | 7.5 | 375 Days |
| SMALL FINANCE BANKS | ||
| Equitas Small Finance Bank | 8.25 | 444 Days |
| Ujjivan Small Finance Bank | 8 | 560 Days |
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Data as on respective banks’ website on Oct 24, 2024. 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. 3 crore for selective public, private and small finance banks considered for data compilation.
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