Special fixed deposits explained: Bank Special FD schemes offer up to 7.95% interest; check top options

As fixed deposit rates remain elevated across the banking sector, several lenders are offering special fixed deposit (FD) schemes with unique tenures and higher interest rates than regular deposits. These schemes are designed to attract savers looking for predictable returns while benefiting from special interest rate premiums.

With scheduled bank FD rates currently ranging from 2.5% to 8% annually, special FD schemes have emerged as a popular choice among investors, particularly senior citizens seeking enhanced returns. These deposits typically come with non-standard tenures such as 400, 444, 555, or 700 days and often offer rates that are 10-50 basis points higher than conventional FDs.

What are Special Fixed Deposits?

A special FD is a time deposit scheme launched for a specific tenure and period, often offering better interest rates than regular FDs of comparable duration. Most banks also provide additional benefits to senior citizens and super senior citizens through higher interest payouts.

However, investors should note that premature withdrawal may attract penalties and reduce the effective return earned on the deposit.

SBI Amrit Vrishti: 444-Day Deposit

State Bank of India’s Amrit Vrishti scheme offers a fixed tenure of 444 days and is available for deposits ranging from ₹1,000 to ₹3 crore. The scheme allows monthly, quarterly, half-yearly, or maturity-based interest payouts and also offers loan or overdraft facilities against the deposit.

Interest Rates
Category    Interest Rate
General Public    6.45%
Senior Citizens    6.95%
Super Senior Citizens (80+)    7.05%

The scheme carries a premature withdrawal penalty of 0.5% for deposits up to ₹5 lakh and 1% for larger deposits.

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Indian Bank IND Secure FD

Indian Bank’s IND Secure scheme also comes with a tenure of 444 days and is available for deposits from ₹1,000 up to less than ₹3 crore.

Interest Rates
Category    Interest Rate
General Public    6.60%
Senior Citizens    7.10%
Super Senior Citizens    7.35%

The scheme permits premature withdrawals and offers digital overdraft and loan facilities against deposits.

Bank of Baroda’s bob Square Drive Deposit Scheme

Bank of Baroda’s bob Square Drive Deposit Scheme is a special retail fixed deposit with a 444-day tenure, available for deposits up to ₹3 crore. The scheme is offered in both callable and non-callable variants and is open to general customers, NRE/NRO account holders, senior citizens, and super senior citizens.

Under the scheme, interest rates range from 6.45% to 7.10% per annum, with the highest rate available to super senior citizens on non-callable deposits. Senior citizens receive an additional 0.50% interest benefit, while super senior citizens get an extra 0.10% over the senior citizen rate.

Category    Callable FD (444 Days)    Non-Callable FD (444 Days)
General Public / NRE / NRO    6.45% p.a.    6.50% p.a.
Senior Citizens    6.95% p.a.    7.00% p.a.
Super Senior Citizens (80 years & above)    7.05% p.a.    7.10% p.a.

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Green FDs

Banks are increasingly launching Green Fixed Deposits, where funds are earmarked for environmentally sustainable projects and green financing initiatives.

Some notable green FD offerings include:

SBI Green Rupee Term Deposit with tenures of 1,111, 1,777 and 2,222 days.
Bank of India Harit Jama Yojana with a 999-day tenure.
Bank of Baroda Earth Green Term Deposit.
Canara Bank Green Deposit Scheme.
IDBI Vasundhara Green Deposit offering 6.35% for regular citizens and 6.85% for senior citizens on a tenure of 1,111 days.
Special Schemes for Senior Citizens

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Special FD schemes for senior citizens

SBI’s We-Care Deposit Scheme provides an additional 50 basis points over the regular senior citizen premium for deposits between five and ten years. Indian Bank, Bank of Baroda and ICICI Bank have also introduced special interest rate incentives for senior citizen depositors across select tenures.

What should investors consider?

While special FD schemes offer higher returns and assured income, investors should evaluate factors such as tenure, liquidity needs, premature withdrawal penalties and taxation before investing. Non-callable deposits generally provide better interest rates but restrict early withdrawal, while callable deposits offer greater flexibility.

For conservative investors seeking stable returns amid market volatility, special FD schemes from public and private sector banks continue to present an attractive opportunity, particularly for senior citizens looking to maximize income from fixed-income investments.

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