Fixed Deposits (FDs) are a popular investment option offered by public and private banks, providing a safe and guaranteed return with a fixed interest rate. While general FDs are commonly available, some banks also offer special FD schemes with higher interest rates, such as the SBI 400 Days FD and PNB 400 Days FD. Here’s a summary of the two schemes:
SBI 400 Days FD:
- Offered by State Bank of India (SBI), one of the largest public sector banks in India
- Investment period: 400 days (approx. 13 months)
- Interest rate: 6.50% to 7.00% per annum
- Minimum deposit: ₹1,000
- Maximum deposit: No maximum limit
- Liquidity: Premature withdrawal allowed after 275 days with 0.50% penalty
- Tax benefit: Section 80C of Income Tax Act, 1961
PNB 400 Days FD:
- Offered by Punjab National Bank (PNB), a premium public sector bank
- Investment period: 400 days (approx. 13 months)
- Interest rate: 6.75% to 7.25% per annum
- Minimum deposit: ₹5,000
- Maximum deposit: No maximum limit
- Liquidity: Premature withdrawal allowed after 300 days with 0.75% penalty
- Tax benefit: Section 80C of Income Tax Act, 1961
Both SBI 400 Days FD and PNB 400 Days FD are considered safe investment options, offering a higher interest rate compared to general FDs. They are suitable for individuals seeking predictable returns, low risk, and tax benefits. The interest rates for both schemes are competitive, and the investment period is approximately 1 year, making them an attractive option for those looking for a short-term investment. However, it is essential to consider other factors, such as inflation, market conditions, and the bank’s reputation, before making an investment decision.