Special vs regular FDs: Key differences and which one you should choose

Fixed deposits (FDs) is a widely preferred investment option for risk-averse investors in India, offering assured returns and capital safety. Banks offer different types of fixed deposit schemes, including regular FDs, while some also introduce special fixed deposit schemes with limited-period offers. Each variant comes with its own interest rates, tenure options, and benefits.

As of May 2026, FD rates (offered by public and private lenders, NBFCs, small finance banks) range between 2.50% to 8.30% per annum for general depositors and up to 8.80% for senior citizens. Simple interest applies to deposits shorter than 6 months and everything above that tenure compounds quarterly.

While regular FDs follow standard interest rates across common tenures, special FDs are often launched for limited periods with slightly higher rates to attract investors. Here are the features of both types of FDs and what may be a suitable pick for your financial goals:

Features of special FDs

Apart from regular fixed deposits, many lenders are now launching special FD schemes with unique tenures and comparatively higher interest rates. These deposits are typically available for a limited period and are designed to offer better returns than conventional FDs of similar maturity.

Here are some options of special FDs available for investors, along with their interest rates and tenure:

• SBI Amrit Vrishti: This special fixed deposit scheme comes with a fixed tenure of 444 days. Unlike regular deposits, investors cannot choose a custom tenure under this scheme. SBI currently offers interest rates of 6.45% for general citizens and 6.95% for senior citizens under Amrit Vrishti. Investors can open the deposit with a minimum investment of ₹1,000 through SBI branches, YONO, or internet banking platforms.
• SBI WeCare: This particular fixed deposit scheme is designed exclusively for senior citizens (aged 60 and above). Available for tenures of five years and above, the scheme offers 7.05% interest, including the additional premium over regular FD rates, according to the public lender's website.
• Bank of Baroda's 444-day special FD: This scheme currently offers an interest rate of 6.45% per annum for regular customers and 6.95% for senior citizens, and 7.05% per annum for super senior citizens (aged 80 years and above), as per the bank's website.
• Punjab National Bank's 444-day special FD: The lender offers the highest interest rate in the 444-day special FD. The interest rate for general citizens is 6.60%, while for senior and super senior citizens, the interest rates are 7.10% and 7.40%, respectively, according to Policybazaar.

Features of regular FDs

Unlike special FDs that come with fixed and often non-standard maturities, regular FDs allow investors to choose tenures ranging from a few days to up to 10 years, depending on the bank or financial institution.

Interest rates on regular FDs vary across banks, small finance banks, and NBFCs, with NBFCs and smaller lenders often offering comparatively higher returns to attract deposits, though major lenders are generally considered safer.

Regular FDs also provide features such as premature withdrawal, loan-against-deposit facilities, periodic interest payout options (non-cumulative FDs), and higher rates for senior citizens, making them an attractive option for those who need flexibility along with assured returns.