Special Fixed Deposits (SDF) are a type of fixed deposit offered by banks at higher interest rates than regular fixed deposits. These are often introduced to specific groups such as senior citizens or those with large investments. Well, these can also be customized. Special FDs also have other features like option to choose interest payment tenure, option to withdraw money before maturity without penalty. However, the terms and conditions of these deposits may vary from bank to bank. These are some general features of special fixed deposits.
High interest rates
Special fixed deposits often offer higher interest rates than regular fixed deposits. It will be suitable for investors who are looking for better returns on their savings. For those who want a regular income gain, special fixed deposits with customized interest payout options may be suitable.
Flexibility in tenure
Such investments allow investors to choose the tenure that best suits their financial goals. Banks often offer special fixed deposits with flexible tenure options.
Interest payouts
Depositors have the option of receiving interest payouts on a monthly, quarterly or annual basis, subject to the terms of the bank. It provides a regular income.
Partial withdrawals
Certain fixed deposits allow investors to make partial withdrawals before maturity without incurring significant penalties. This feature is useful for investors who may need access to their funds in an emergency. Also, investors who need access to funds may find the partial withdrawal option attractive.
If you are looking for better returns than traditional fixed investments while maintaining a certain level of safety, then you can consider specialized fixed investments. More than twenty banks offer better interest rates to depositors during better periods. You can compare these banks and make a decision based on your financial goals.
Punjab & Sindh Bank offers the best interest rates among public sector banks. 7.35% interest rate for an investment period of 555 days. Other Banks:
Bank of Baroda – 7.25% for 399 days deposit
Canara Bank – 7.25% for 444 days deposit
Bank of India – 7.25% for 400 days deposit
Indian Overseas Bank – 7.25% for 444 days deposit
Bandhan Bank offers the highest interest rates among private sector banks. 7.85% interest rate for 500 days deposit.
Other Banks:
South Indian Bank – 7.40% for 500 days deposit
Catholic Syrian Bank – 7.35% for 444 days deposit
DCB Bank – 7.75% for 36 months deposit
Some small finance banks offer the highest rate of interest on fixed deposits for a specific period.
Equitas Small Finance Bank – 8.50% for 444 days deposit
Ujjeevan Small Finance Bank – 8.25% for 560 days deposit