High Returns with Safe Investment: Special Fixed Deposit (FD) Schemes from Top Banks

Fixed Deposit (FD) is a popular investment option offered by banks where you deposit a certain amount for a fixed period and earn guaranteed interest in return. FD is known for its safety and stability, making it ideal for risk-averse investors looking for secure returns. In today’s market, several banks are offering special FD schemes with higher interest rates, providing an attractive opportunity for investors.

Types of Fixed Deposits

Fixed Deposits (FDs) offer a secure way to grow your savings with a guaranteed interest rate. Below are the different types of Fixed Deposits available:

1. Standard Term Deposit:

In a Standard Term Deposit, you invest a lump sum amount for a predetermined period at a fixed interest rate. The tenure can range from 7 days to 10 years, depending on the financial institution offering the FD. The interest rate and investment tenure vary based on the bank or financial institution where the FD is held.

2. Senior Citizens Fixed Deposit:

Banks and Non-Banking Financial Companies (NBFCs) offer higher interest rates on Fixed Deposits to senior citizens, typically those aged 60 years or above. Additionally, senior citizens often benefit from tax exemptions on the interest earned from these FDs, making it a favorable option for retirees.

3. Recurring Deposit:

A Recurring Deposit is a type of FD where a fixed amount is deposited regularly, typically monthly or quarterly, over a predetermined period. The interest rate is fixed at the time of opening the RD account. Upon maturity, the depositor receives the total amount along with the accumulated interest.

4. Corporate Fixed Deposit:

Some corporate entities also offer Fixed Deposit schemes, often providing higher interest rates than banks and NBFCs. However, Corporate FDs come with higher risks. If the company becomes insolvent, there is no guarantee that the invested amount can be recovered.

5. NRI Fixed Deposit:

NRI (Non-Resident Indian) Fixed Deposits are designed for individuals earning in foreign currency. These FDs offer the advantage of being tax-free, both on the principal and the interest earned, despite currency fluctuations. This makes NRI FDs an attractive investment option for those living abroad.

Special Fixed Deposit (FD) Schemes from Top Banks

Let’s explore the special FD schemes offered by Indian Bank, Bank of India, Punjab & Sind Bank, and SBI, where you can invest and earn impressive returns. The deadline for these schemes, initially set for June 30, 2024, has now been extended to September 30, 2024, giving investors more time to take advantage.

1. Indian Bank’s ‘Ind Super’ FD Scheme

Indian Bank has introduced the ‘Ind Super’ FD scheme, offering competitive interest rates for specific tenures. This scheme is designed to provide higher returns to different categories of investors, including regular citizens, senior citizens, and super senior citizens.

Interest Rates:

• 300 Days Tenure:
  • Regular Citizens: 7.05%
  • Senior Citizens: 7.55%
  • Super Senior Citizens: 7.80%
• 400 Days Tenure:
  • Regular Citizens: 7.25%
  • Senior Citizens: 7.75%
  • Super Senior Citizens: 8.00%

Why Choose ‘Ind Super’ FD?

• Attractive interest rates tailored for different age groups.
• Flexible tenure options catering to short-term investment goals.
• Assurance of safety and reliability from a reputed public sector bank.

2. Punjab and Sind Bank’s Special FD Schemes

Punjab and Sind Bank is offering Revised Rates

IDBI Bank brings forth the ‘Utsav’ FD scheme, offering lucrative interest rates for specific durations, making it an excellent choice for both regular and senior citizens aiming for higher earnings on their deposits.

Interest Rates

• 300 Days Tenure:
  • Regular Citizens: 7.05%
  • Senior Citizens: 7.55%
• 375 Days Tenure:
  • Regular Citizens: 7.15%
  • Senior Citizens: 7.65%

Benefits of ‘Utsav’ FD:

• Competitive interest rates enhancing your savings growth.
• Suitable for investors seeking short to medium-term investment avenues.
• Trust and stability associated with IDBI Bank’s legacy.

4. SBI’s ‘Amrit Kalash’ and ‘WeCare’ Schemes

State Bank of India (SBI), the country’s largest public sector bank, offers the ‘Amrit Kalash’ FD scheme, along with the exclusive ‘SBI WeCare’ scheme for senior citizens, ensuring higher returns and added benefits.

‘Amrit Kalash’ FD Scheme Interest Rates

• 400 Days Tenure:
  • Regular Citizens: 7.10%
  • Senior Citizens: 7.60%

‘SBI WeCare’ Scheme

• Offers an additional 50 basis points premium over the existing card rates exclusively for senior citizens.

Key Advantages:

• Enhanced interest rates providing better returns.
• Special benefits and higher rates for senior citizens.
• Backed by SBI’s extensive network and robust financial services.

5. Bank of India’s ‘Star Dhan Vriddhi’ Special FD Scheme

Bank of India has recently launched the ‘Star Dhan Vriddhi’ special FD scheme, targeting investors aiming for substantial returns over a relatively short period.

Interest Rates

• 333 Days Tenure:
  • Regular Citizens: 7.25%
  • Senior Citizens: 7.75%
  • Super Senior Citizens: 7.90%

Revised Interest Rates Effective from September 1, 2024:

• Senior Citizens: 3.00% to 7.75% across various tenures.
• Super Senior Citizens: 3.00% to 7.90% across various tenures.

Why Invest in ‘Star Dhan Vriddhi’?

• Highly competitive rates ensuring maximum growth.
• Flexible investment options suitable for diverse financial goals.
• Assurance of safety and credibility from a leading public sector bank.

6. ICICI Bank’s Revised FD Interest Rates

ICICI Bank has revised its FD interest rates as of September 2, 2024, offering attractive returns across various tenures, making it a viable option for both short-term and long-term investors.

Interest Rates for Deposits up to ₹3 Crores:

• 61 – 90 Days Tenure:
  • Regular Citizens: 4.50%
  • Senior Citizens: 5.00%
• 91 – 184 Days Tenure:
  • Regular Citizens: 4.75%
  • Senior Citizens: 5.25%
• 185 – 270 Days Tenure:
  • Regular Citizens: 5.75%
  • Senior Citizens: 6.25%
• 1 Year to 15 Months Tenure:
  • Regular Citizens: 6.70%
  • Senior Citizens: 7.20%
• 15 Months to 18 Months Tenure:
  • Regular Citizens: 7.25%
  • Senior Citizens: 7.80%
• 18 Months to 2 Years Tenure:
  • Regular Citizens: 7.25%
  • Senior Citizens: 7.75%
• 2 Years 1 Day to 5 Years Tenure:
  • Regular Citizens: 7.00%
  • Senior Citizens: 7.50%
• 5 Years 1 Day to 10 Years Tenure:
  • Regular Citizens: 6.90%
  • Senior Citizens: 7.40%
• 5 Years Tax Saving FD:
  • Regular Citizens: 7.00%
  • Senior Citizens: 7.50%

Advantages of Investing with ICICI Bank

• Wide range of tenure options catering to varied investment horizons.
• Competitive interest rates ensuring optimal growth of savings.
• Robust digital banking services facilitating easy management of FDs.

Conclusion

Investing in these special Fixed Deposit schemes offered by leading banks in 2024 can significantly enhance the growth of your savings while ensuring utmost security. With extended deadlines and attractive interest rates, now is an opportune time to diversify your investment portfolio with these lucrative FD options. Evaluate your financial goals and choose the scheme that aligns best with your investment strategy to enjoy secure and high returns.

Disclaimer

The content of this article/infographic/picture/video is for informational purposes only. The content is general in nature and is for informational purposes only. The information is subject to update, completion, modification, verification, and alteration and may change materially. Krishna Enterprises will not be responsible for any direct/indirect loss or liability incurred by the reader for any financial decisions taken based on the content and information provided. The features, benefits, and offers mentioned in the article are applicable from the date of publication of this blog and are subject to change without notice. The content provided herein is also subject to other product-specific terms and conditions and any terms and conditions of any third party, as may be applicable.

Frequently Asked Questions (FAQ) About Fixed Deposits (FDs)

1. What is a Fixed Deposit (FD)?

• A Fixed Deposit (FD) is a financial instrument offered by banks and financial institutions where you deposit a lump sum of money for a fixed period at a predetermined interest rate. The interest is paid out either at maturity or periodically, depending on the type of FD chosen.

2. How does a Fixed Deposit work?

• When you invest in an FD, you agree to keep your money locked in for a specific tenure, ranging from 7 days to 10 years. In return, the bank pays you a fixed interest rate, which is often higher than a regular savings account. At the end of the tenure, you receive your principal amount along with the accrued interest.

3. What are the benefits of investing in an FD?

• Safety: FDs are considered a low-risk investment as they are not affected by market fluctuations.
• Guaranteed Returns: You earn a fixed rate of interest over the investment period.
• Flexibility: FDs offer various tenures, allowing you to choose according to your financial goals.
• Higher Interest for Senior Citizens: Senior citizens often receive higher interest rates on FDs.

4. Can I withdraw my FD before its maturity?

• Yes, you can withdraw your FD before maturity, but it will usually incur a penalty, which reduces the interest earned. The penalty amount varies between banks.

5. What are the different types of Fixed Deposits available?

• Standard Term Deposit
• Senior Citizens Fixed Deposit
• Recurring Deposit
• Corporate Fixed Deposit
• NRI Fixed Deposit

6. What is the minimum and maximum tenure for an FD?

• The minimum tenure for an FD is typically 7 days, while the maximum tenure can go up to 10 years. Some banks may offer special schemes with longer durations.

7. Are Fixed Deposits taxable?

• Yes, the interest earned on Fixed Deposits is taxable. It is added to your income and taxed as per your income tax slab. However, banks deduct Tax Deducted at Source (TDS) if the interest earned exceeds ₹40,000 (₹50,000 for senior citizens) in a financial year.

8. Can I take a loan against my Fixed Deposit?

• Yes, most banks offer loans against your FD. You can typically borrow up to 90% of the FD amount, depending on the bank’s policy. This option helps you meet financial needs without breaking your FD.

9. What happens when an FD matures?

• Upon maturity, the bank credits the principal amount and the accrued interest to your linked savings account. Some banks offer auto-renewal options where the FD gets renewed for the same tenure if no instructions are provided by the depositor.

10. How is the interest on an FD calculated?

• The interest on an FD is usually compounded quarterly, semi-annually, or annually, depending on the bank’s policy. The formula for interest calculation is based on the principal amount, interest rate, and tenure of the deposit.

11. What is the difference between a cumulative and non-cumulative FD?

• In a cumulative FD, the interest is compounded and paid at maturity along with the principal. In a non-cumulative FD, the interest is paid out periodically (monthly, quarterly, half-yearly, or annually) as per the depositor’s preference.

12. Is it possible to open an FD account online?

• Yes, most banks allow you to open an FD account online through their internet banking or mobile banking platforms. The process is quick, and you can choose the tenure and amount as per your preference.

LAKSHMI AGARWAL