Don’t Miss Out! SBI, IDBI and Other Banks Unveil Unbelievable FD Rates

Fixed Deposit (FD) schemes have long been a popular investment option in India due to their safety, assured returns, and ease of access. While the traditional Fixed Depositshas always been a go-to for conservative investors, banks and financial institutions have introduced special FD schemes tailored to meet specific investor needs, offering higher interest rates, additional features, and flexible tenures. This article explores some of the most prominent special FD schemes available in India, highlighting their unique benefits and how they cater to diverse investor profiles.

Types of Special FD Schemes

Here are the types of fixed deposits in India:

1. Senior Citizen Special FD Schemes

Senior citizens are often the most cautious investors, prioritizing safety and regular income. To cater to this demographic, banks have launched special FD schemes offering higher interest rates exclusively for individuals aged 60 and above. These schemes typically offer an additional interest rate of 0.25% to 0.75% over the regular FD rates. The tenures for these deposits can vary, usually ranging from one year to five years, and the interest can be paid out monthly, quarterly, or annually, depending on the bank's terms.

Key Features:
•    Higher interest rates than regular FDs.
•    Flexible payout options.
•    Capital protection with guaranteed returns.

Example:

•    The State Bank of India (SBI) offers the "SBI WeCare FD" scheme, where senior citizens can earn an additional 50 basis points (bps) over the standard rate, particularly on tenures of 5 years and above.

2. Tax-Saving FD Schemes

For individuals looking to save on taxes while earning a steady return, tax-saving FD schemes are an ideal choice. Under Section 80C of the Income Tax Act, 1961, investments in these FDs qualify for a deduction of up to ₹1.5 lakh. However, these schemes come with a lock-in period of five years, meaning the deposit cannot be withdrawn prematurely.

Key Features:

•    Tax deduction benefits under Section 80C.
•    Fixed tenure of five years.
•    Interest earned is taxable.

Example:

•    HDFC Bank offers a tax-saving FD with an interest rate competitive with its regular FDs, but with the added benefit of tax savings under Section 80C.

3. NRE/NRO FD Schemes

Non-Resident Indians (NRIs) have unique financial needs, and banks in India offer specialized FD schemes to cater to them. The Non-Resident External (NRE) and Non-Resident Ordinary (NRO) FDs are designed to meet the requirements of NRIs, with benefits like repatriation of funds and attractive interest rates.

Key Features:

•    NRE FDs offer tax-free interest and full repatriation of both principal and interest.
•    NRO FDs are subject to taxation, but they allow the deposit of Indian income, with partial repatriation.
•    Interest rates are often competitive with domestic Fds.

Example:

•    ICICI Bank’s NRE FD scheme offers an interest rate comparable to domestic FDs, with the added advantage of tax-free returns and easy repatriation.

4. Super Saver FD Schemes

To attract higher deposits, banks sometimes offer special "Super Saver" FD schemes with higher interest rates than regular FDs. These schemes are often available for limited periods and may require a minimum deposit amount to qualify for the enhanced rates.

Key Features:

•    Higher interest rates for limited periods.
•    May require a substantial minimum deposit.
•    Often not open-ended, with limited availability.

Example:

•    Bank of Baroda occasionally offers a "Baroda Advantage FD," where depositors can earn higher interest rates on deposits exceeding a certain amount for specific tenures.

5. Flexi Fixed Deposit Schemes

For those seeking the safety of FDs with the flexibility of savings accounts, Flexi Fixed Deposit schemes are a perfect match. These schemes link an FD with a savings or current account, allowing automatic transfer of surplus funds into the FD, thus earning higher interest while maintaining liquidity.

Key Features:

•    Automatic sweep-in facility from a savings account to FD.
•    Earns higher interest than a regular savings account.
•    Provides liquidity as funds can be transferred back to the savings account if needed.

Example:

•    The "Auto Sweep FD" by Axis Bank is a popular Flexi FD scheme that offers competitive interest rates while maintaining liquidity for the customer.

Special Fixed Deposit Schemes: To counter the decline in deposits, several Indian banks have introduced limited-period special Fixed Deposit (FD) schemes with fixed tenures and enhanced interest rates. These schemes, launched in the past two months, present a promising investment option for Indian investors seeking stable and reliable returns on their savings. Below are the top special FD schemes recently introduced, offering attractive interest rates.

Check FD Calculator: Fixed Deposit Calculator Online in India

Top 5 FD Schemes with Higher Interest Rates Available Now.

1.    SBI Amrit Vrishti Scheme 

In July 2024, the government-owned State Bank of India (SBI) introduced the Amrit Vrishti Retail Term Deposit Scheme. This FD scheme offers a tenure of 444 days with an interest rate of up to 7.25% for regular investors and 7.75% for senior citizens. The scheme, which started on July 15, 2024, is open for investments until March 31, 2025, giving investors ample time to take advantage of this opportunity.

2.    Bank of Baroda’s Monsoon Dhamaka Scheme 

Launched in July 2024, the Monsoon Dhamaka FD scheme by Bank of Baroda offers an interest rate of 7.15% for a tenure of 333 days, increasing to 7.65% for senior citizens. Additionally, the scheme provides an interest rate of 7.25% for a 399-day deposit, with a higher rate of 7.40% for non-callable deposits. Senior citizens can benefit from a rate of up to 7.75%.

3.    IND Super 400 Days 

Indian Bank has introduced the "Ind Super 400" and "Ind Super 300 days" FD schemes for a limited period, specifically targeting tenures of 300 to 400 days. Under the Ind Super 400 days scheme, the bank offers a 7.25% interest rate to the general public and 7.75% to senior citizens for a 400-day tenure. The Ind Super 300-day scheme provides a 7.05% interest rate for general investors and 7.55% for senior citizens. This scheme is available until September 30, 2024.

4.    IDBI Bank FD Scheme 

IDBI Bank’s Amrit Mahotsav FD scheme is an appealing option for those looking to maximize returns on their fixed deposits. This scheme, available until September 30, 2024, offers FDs for tenures of 375 and 445 days. For a 300-day tenure, the bank provides a 7.05% interest rate for regular citizens and 7.55% for senior citizens. For the Utsav FDs maturing in 375 days, the interest rates are 7.25% for regular citizens and 7.75% for senior citizens, increasing to 7.35% and 7.85%, respectively, for a 444-day tenure.

5.    RBL Bank Vijay FD Scheme 

RBL Bank introduced the Vijay Fixed Deposit scheme with a special 500-day tenure on Independence Day. This scheme offers an impressive interest rate of 8.6% per annum for senior citizens and 8.10% for general citizens over the 500-day period. The bank announced this scheme on social media, highlighting it as a tribute to India’s bravehearts, with more details available on their official platform.

These schemes represent a range of high-interest FD options for investors looking to secure stable returns during this period.

Conclusion

Special FD schemes in India provide tailored solutions to meet the varied financial needs of investors. Whether you are a senior citizen seeking higher returns, an NRI looking for tax-efficient investment options, or a risk-averse investor wanting to save on taxes, there is likely a special FD scheme that aligns with your financial goals. Understanding the unique features and benefits of these schemes can help you make an informed decision, ensuring that your investments are not only safe but also optimized for maximum returns.