Fixed Deposits (FDs), offered by leading banks, have become a popular investment option due to their low risk.
However, many banks have introduced special FD schemes to provide higher interest rates, attracting more investors.
In this article, we delve into the difference between special FDs and normal FDs, helping you maximize your earnings.
Understanding Fixed Deposits (FDs)
Overview of Normal FDs: When you invest in a normal FD, your deposit remains locked in for a specified period, earning interest over time.
It serves as a means to save for specific needs, with penalties for premature withdrawals. However, special circumstances may allow for exceptions, albeit with potential fines.
Decoding Special Fixed Deposits
What are Special FDs? Special FDs come with distinct terms and conditions compared to normal FDs. They offer flexibility in deposit amounts, tenure, and account opening time.
The most enticing aspect is the higher returns they offer, leading to an increased interest in special FDs among investors. Numerous banks now provide special FD options.
HDFC Bank Introduces Special FD
HDFC Bank’s Special FD Offering: HDFC Bank has recently launched its Special FD, featuring higher interest rates.
The bank has introduced two special fixed deposit plans with limited tenure, providing a better investment option for customers. Additionally, senior citizens are eligible for an additional 0.50 percent interest rate.
Unveiling Interest Rates Across Banks
Interest Rates in Prominent Banks: State Bank of India (SBI), the country’s largest bank, has introduced the Amrit Kalash scheme, offering a 7.10 percent interest rate to general investors and 7.60 percent to senior citizens on a 400-day special FD.
Indian Bank has also launched the Ind Super 400 Days Special Fixed Deposit Scheme, with a 7.25 percent interest rate for the general public and 7.75 percent for senior citizens.
