Bank FD: Fixed deposit ie FD is a low-risk investment option, as the interest rate remains constant during the tenure of the account. Fixed deposits often offer higher interest rates than regular savings accounts. They also beat inflation. This feature makes them an attractive investment option for those seeking better returns.
Nowadays, many banks also offer special fixed deposit ie special FD options. These have a higher rate of interest than regular fixed deposit accounts. Banks usually offer such schemes to lure customers.
What is special FD
The terms of special FDs are different from normal FDs. Such FDs may be subject to additional limitations, such as minimum deposit amount, longer tenure and limited time for opening the account. These types of FDs are very popular among investors due to high returns.
Today we are discussing about two special fixed deposit schemes, which are being offered by two of the biggest banks, SBI and HDFC. Both these FDs will expire on March 31, 2023.
SBI Amrit Kalash FD
According to the SBI website, the 400-day Amrit Kalash Special FD, which started from February 15, 2023 at an interest rate of 7.10%, will be valid till March 31, 2023. Senior citizens are eligible for an interest rate of 7.60% under this scheme.
SBI last raised interest rates on fixed deposits of less than Rs 2 crore on February 15, 2023. The bank currently offers interest rates ranging from 3.00% to 6.50% for general public and 3.50% to 7.50% for senior citizens. Bank deposits are valid from 7 days to 10 years.
HDFC bank
HDFC, the largest private sector bank in India, launched the Senior Citizen Care FD scheme for older people in May 2020, during the initial wave of the Covid-19 pandemic. Its duration was extended several times. Its term is ending on March 31, 2023.
HDFC Bank has mentioned on its website that an additional premium of 0.25% will be given to senior citizens who want to book FDs below 5 crores for 5 years. This special offer is applicable for newly booked Fixed Deposits as well as for renewals. The scheme is not applicable to NRIs.
HDFC Bank offers a regular rate of 7.00% on deposits ranging from 5 years 1 day to 10 years, but senior citizens are offered 7.75% interest, which is 75 basis points higher than the standard rate under Senior Citizen Care FD.
