Fixed Deposits (FDs) have been a popular investment option for individuals seeking stable and assured returns. However, with the rise of mutual funds and equities, traditional FDs have seen a decline in investor interest. To counter this trend, several banks have launched special limited-period FD schemes offering higher interest rates. These special FDs are promotional in nature, offering better interest rates for specific fixed tenures, typically for a limited duration.
Two popular special FD options are the SBI’s 444-day ‘Amrit Vrishti’ special FD and Union Bank of India’s 456-day special FD. The SBI special FD offers an interest rate of 6.6% per annum for general citizens, while the Union Bank of India special FD offers an interest rate of 6.85% per annum. These interest rates are higher than those offered by standard FDs, which are available year-round with flexible tenures.
For an investment of Rs 4.75 lakh, the maturity value for the SBI 444-day FD would be approximately Rs 5,14,370.89, with an interest earned of approximately Rs 39,370.89. In comparison, the Union Bank of India 456-day FD would offer a maturity value of approximately Rs 5,17,064.89, with an interest earned of approximately Rs 42,064.89.
For a larger investment of Rs 6.75 lakh, the maturity value for the SBI 444-day FD would be approximately Rs 7,30,948.11, with an interest earned of approximately Rs 55,948.11. The Union Bank of India 456-day FD would offer a maturity value of approximately Rs 7,34,776.43, with an interest earned of approximately Rs 59,776.43.
It’s worth noting that these returns are indicative and for illustrative purposes only. Investors are advised to verify the rates and consult a certified financial advisor before making any investment decisions. Special FDs can be a good option for investors looking for better returns within a defined timeframe, but it’s essential to carefully evaluate the terms and conditions before investing. Overall, special FDs offer a relatively safe and stable investment option with potentially higher returns than standard FDs, making them an attractive choice for investors seeking assured returns.