If you’re considering locking in a higher interest rate on Fixed Deposits (FD), you have until September 30 to take advantage of the special FD schemes offered by SBI, IDBI Bank, and Indian Bank. These schemes offer competitive interest rates ranging from 7.05% to 7.35% for general investors, and slightly higher for senior citizens. But should you invest? Here’s a breakdown of why this might be the right time to make your move.
Higher Interest Rates for a Limited Time
With expectations of a rate cut by the US Federal Reserve on September 18 and the possibility of the Reserve Bank of India (RBI) following suit later this year, banks are likely to reduce FD rates soon after. This presents a unique opportunity for investors to lock in higher returns before rates begin to decline.
FD schemes currently offer higher interest rates compared to regular options, making them attractive for investors seeking stable and guaranteed returns.
Multiple Tenure Options with Attractive Returns
Each bank is offering different tenure options for their special FD schemes:
- IDBI Bank’s Utsav FD scheme offers terms of 300, 375, 444, and 700 days. Senior citizens can earn between 7.55% to 7.85% per annum, while general investors get between 7.05% to 7.35%.
- SBI’s Amrit Kalash scheme provides a 7.60% annual interest rate for senior citizens on 400-day FDs, while others will get 7.10%.
- Indian Bank’s IND Supreme scheme offers 7.05% for 300 days, while the IND Super scheme provides 7.25% for 400-day FDs. These rates apply to general, NRO, and NRE investors.
Will FD Rates Drop Soon?
As inflation in India fell to 3.65% in August, there’s a chance that inflation could decrease further, leading the RBI to reduce rates later this year. This would result in lower FD interest rates across the board. Investing in these special FD schemes before the September 30 deadline allows you to take advantage of the current high rates before they potentially drop.
Is it the Right Time to Invest in These FD Schemes?
According to financial experts, these special FD schemes are a great option for those who seek stable returns, especially for senior citizens looking for fixed-income options. Krishan Mishra, CEO of FPSB India, suggests, “Long-term FDs provide stability, particularly for senior citizens.” Additionally, he emphasizes that these special FD schemes can add an essential layer of diversification to any investor’s portfolio.
