This PSB to discontinue special FD of 555 days with up to 7.50% return from March 31
2 min read 28 Mar 2023, 03:21 PM ISTHere, we're referring to a special fixed deposit offered by Indian Bank, a public sector bank (PSB), which was introduced on December 19, 2022 with the promise of higher interest rates for customers.
PremiumA fixed deposit (FD) is a financial instrument that enables individuals to deposit a lump sum of money for a specified period of time at a fixed rate of interest. In general, banks offer fixed deposits with terms that range from seven days to ten years and the chosen tenure of the deposit and the amount placed to determine the interest rates paid on these deposits. Fixed deposit interest rates vary from bank to bank and are based on a number of variables, including the amount placed and the deposit's tenure.
Here, we're referring to a special fixed deposit offered by Indian Bank, a public sector bank (PSB), which was introduced on December 19, 2022 with the promise of higher interest rates for customers. The bank is guaranteeing an interest rate of 7.00% for the general public and 7.50% for senior citizens on investments ranging from Rs. 5000 to less than 2 Crore under the "Ind Shakti 555 Days" plan, which has a special tenure of 555 days.
Indian Bank has mentioned on its website that “Special Retail Term Deposit Product “IND SHAKTI 555 DAYS" has been launched w.e.f 19.12.2022 offering a higher rate of interest for investment starting from Rs.5000 to less than 2 Crore for 555 days in the form of FD/MMD with callable options. Scheme Valid till 31.03.2023."
“In rising deposit interest rate regime among peer banks, and to continue the Bank’s intent to pass on the benefit of recent RBI Policy Rate Changes towards customers & general Public, a fixed maturity term deposit product of 555 days with a special rate of interest having validity up to 31.03.2023 is being launched w.e.f. 19.12.2022. This product aims at attracting new retail customers besides helping the Bank for the much required organic boost for its retail term deposits portfolio which will play a crucial role in Bank’s long term vision and growth," mentioned Indian Bank on its website.
Individuals (singly or jointly), NRI (NRO /NRE), Firm (Proprietorship/Partnership), Company, Association, Society, Club, HUF, Religious, Charitable or Educational Institutions and Municipality or Panchayat, Government or Quasi Government Bodies can open a fixed maturity term deposit product of 555 days with Indian Bank. On "Ind Shakti 555 Days" plan, the bank is also allowing preclosure facilities subject to penalty.
Meanwhile, IDBI Bank started its "IDBI Naman Senior Citizen Deposit" programme on April 20, 2022, as a special FD programme for older people. However, this scheme's expiration date is March 31, 2023, according to the bank's official website. Residents who are senior citizens will get an uptick in interest rate of 0.25% on this programme in addition to the existing additional rate of 0.50% annually, bringing their total additional benefit to 0.75%. This programme is applicable for tenors longer than one year and up to ten years. By March 31, 2023, the nation's 2 major lenders, SBI and HDFC Bank, will likewise discontinue their special fixed deposit programmes for senior citizens. On February 15, 2023, SBI introduced 400 days "(Amrit Kalash) FD programme with 7.60% interest for elderly persons and 7.10% interest for the general public.
On the other hand, HDFC Bank unveiled its "Senior Citizen Care FD" in May 2020 "and following multiple extensions, the programme would ultimately come to an end on March 31, 2023, barring any other extensions. HDFC Bank is guaranteeing an additional rate benefit of 0.25% over and above the existing premium of 0.50% under the plan, which is available on fixed deposits of less than 5 crores for a period of 5 (five) years and 1 day to 10 years.
