3 special fixed deposit (FD) schemes to end next week
3 min read 28 Oct 2022, 03:58 PM ISTInvestments in fixed deposits are among the conventional bets for risk-averse investors who want to achieve a fixed income and deposit safety without taking any risks related to the market.
PremiumInvestments in fixed deposits are among the conventional bets for risk-averse investors who want to achieve a fixed income and deposit safety without taking any risks related to the market. Interest rates on fixed deposit products are trending in the right direction in tandem with the rising repo rate, which has been raised by 190 basis points (bps) to date, including the most recent 50 bps rise by the RBI, bringing it to 5.90%. It is now the optimum time to open an FD account with a DICGC-insured bank to receive deposit cover of up to ₹5 lacs, which is the cherry on top of the cake when it comes to risk-free returns. To please investors, some banks are also offering special fixed deposit plans with higher interest rates, but it's important to keep in mind that, apart from SBI, which will stop accepting Utsav Deposits from today, other major financial institutions like ICICI Bank, HDFC Ltd., and Indian Bank will stop offering their special fixed deposit plans the very next week.
ICICI Bank Golden Years FD
The ICICI Bank Golden Years FD is a special fixed deposit programme that the bank offers only to older folks, making it one of the safest fixed deposits available and rated "AAA," easily outperforming any competitors. The scheme was introduced by ICICI Bank on May 20, 2020, and thanks to various extensions, it will now run until October 31, 2022. In addition to the existing additional rate of 0.50% per year, resident senior citizen customers will get an additional interest rate on FDs of 0.15%, which will be accessible on both newly established deposits and deposits renewed during the scheme duration.
ICICI Bank Golden Years FD comes with a tenor of 5 years 1 day, up to 10 years, on this tenor ICICI Bank offers a standard interest rate of 6.10% but senior citizens will get an interest rate of 6.75% which is 65 bps higher than the standard rate. This additional interest rate benefit for senior citizens under ICICI Bank Golden Years FD is applicable on a single FD opened through ICICI Bank with an amount less than ₹2 crore.
Indian Bank Special FD
Indian Bank introduced the "IND UTSAV 610" special fixed deposit for retail investors on September 14, 2022. Indian Bank has mentioned on its website that “Special Money Multiplier Term Deposit Product “IND UTSAV 610 “offering higher rate of interest with fixed maturity tenor of 610 days with callable options."
“IND UTSAV 610 – A Special Term Deposit Plan for 610 days @ 6.10 % p.a for Public , 6.25 % p.a for Senior Citizens & 6.50 % p.a for Super Senior Citizens (80 Years and above ) valid up to 31.10.2022," Indian Bank has mentioned on its website. A minimum deposit of Rs. 10000 and a maximum amount of Rs. 2 Cr. are required to open the "IND UTSAV 610" deposit scheme. On 04.10.2022, Indian Bank last updated the interest rates on fixed deposits under ₹2 Cr. Following the modification, the bank is currently providing an interest rate on deposits maturing in 7 days to more than five years that ranges from 2.80% to 5.65%. On deposits maturing in 3 years or less than 5 years, Indian Bank is giving a maximum interest rate of 5.75%.
HDFC Ltd
A new fixed deposit known as "Sapphire Deposits" has been launched by HDFC Ltd, one of India's top housing finance companies, and it would be in effect as of October 14, 2022. To mark its 45th anniversary, the company has introduced a special fixed deposit with a tenor of 45 months. Under this temporary programme, open to both people and trusts, interest rates would be applied on deposits up to ₹2 Cr. The program's expiration date is October 31, 2022, and investors can earn returns of up to 7.50%. The "Sapphire Deposits" from HDFC offer options for quarterly, half-yearly, annual, and cumulative payments in addition to monthly income plans.
The Monthly Income Plan has a 7.25% interest rate and a ₹40,000 minimum deposit requirement. The minimum deposit amount for the quarterly option is ₹20,000, and the interest rate is 7.30%. The minimum deposit amount for the half-yearly option is ₹20,000, and the interest rate is 7.35%. The Annual Income Plan has an interest rate of 7.50% and requires a minimum deposit of ₹20,000. HDFC is providing an interest rate of 7.50% under the cumulative option, and a ₹20,000 minimum deposit is required.
