Fixed Deposits (FDs) have long been a popular investment option offered by major banks in India. They provide a low-risk avenue for individuals to earn interest on their savings.
However, in recent times, banks have introduced special FD schemes to offer higher interest rates and attract more investors.
As a potential investor, understanding the difference between special FDs and normal FDs can help you maximize your earnings.
Normal FDs:
In a normal FD, you deposit a specific amount for a predetermined period, during which the deposited amount accrues interest. The primary purpose of an FD is to save funds for a specific purpose or to accumulate wealth over time.
However, premature withdrawals may be subject to penalties, except in exceptional circumstances.
Special FDs:
Special FDs differ from normal FDs in terms of their terms and conditions. They may offer varying minimum deposit amounts, longer tenures, and limited account opening windows.
The most notable feature of special FDs is the higher returns they offer compared to normal FDs.
Consequently, many investors are increasingly drawn to special FDs, and several banks now provide such schemes.
HDFC Bank’s Special FD:
HDFC Bank has recently introduced a special FD scheme with attractive interest rates. It includes two plans designed for a limited tenure, making it an enticing investment option for individuals.
Additionally, the bank offers an extra 0.50% interest rate to senior citizens, further enhancing the potential returns.
Interest Rates on Special FDs:
State Bank of India (SBI), the country’s largest bank, has launched the Amrit Kalash scheme, a 400-day special FD offering a 7.10% interest rate for general investors and 7.60% for senior citizens.
Indian Bank has also introduced the Ind Super 400 Days Special Fixed Deposit Scheme, providing a 7.25% interest rate for the general public and 7.75% for senior citizens.
By comparing the interest rates and features of various special FD schemes offered by different banks, investors can choose the most suitable option to maximize their earnings potential.
It is essential to carefully evaluate the terms, conditions, and interest rates of special FDs before making any investment decisions.
