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These FD Schemes Are Closing In August, Make Most Of Them While Rates Are Still High

The Reserve Bank of India kept a pause on the rate hike in the last two monetary policy meetings, but the banks have been changing their deposit rates from time to time. Here are a few of the rates still active till the end of August 2023

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Outlook Money
August 1, 2023
FD Schemes Are Closing In August

FD Schemes Are Closing In August

The Reserve Bank of India (RBI) maintained a pause on the interest rate hike in its last two monetary policy meetings, but banks have been changing the deposit rates or extending the special deposit periods. In August 2023, some of these special fixed deposit schemes will run the end of their course and will stop accepting deposits from the public.

As such, you might as well lock in your FDs while the rates are still high and active. Here are the banks which are offering these special rates and are likely to run till the end of August 2023.

State Bank Of India (SBI): SBI’s Amrit Kalash special fixed deposit scheme was first launched in February 2023 and has been extended a few times since then. Its current closing date is August 15, 2023. This 400-day FD scheme offers interest compounded quarterly.

Seniors can avail of a deposit rate of 7.60 per cent per annum as against the 7.10 per cent being offered to the general public. The annualised yield based on these interest rates would be around 7.82 per cent for seniors and 7.29 per cent for others, according to the bank’s website.

It is the highest interest rate tenure available for seniors as well as other depositors. Besides this, seniors can also book FDs at 7.50 per cent for tenures ranging from two years to 10 years. One can apply for this FD through the bank’s YONO mobile app, Netbanking, or by visiting the bank branch.

Indian Bank: The bank revised its FD rates on March 4, 2023. On March 6, 2023, it launched its special FD ‘IND SUPER 400 DAYS’. The FD was launched at 7.10 per cent, but the rate for this FD was revised on April 20, 2023. At present, for the general public, the deposit rate is 7.25 per cent, while for seniors, it is 7.75 per cent. For super seniors, the bank is offering a deposit rate of 8 per cent in this FD. One can book this FD with a minimum deposit of Rs. 10,000.

The bank launched one more special tenure FD, ‘IND SUPREME 300 DAYS’, effective July 1, 2023. The minimum deposit amount under this scheme is Rs 5,000. The bank is offering senior citizens a deposit rate of 7.55 per cent, and super seniors a rate of 7.80 per cent, which is 75 basis points higher than the rate offered to the general public at 7.05 per cent.

The 400-day FD offers the highest interest followed by the 300-day FD. The two FD schemes are open for deposit until August 31, 2023.

IDBI Bank: IDBI Bank’s special term deposits have been named as ‘Amrit Mahotsav FD’. The bank is offering two schemes with tenures of 375 days and 444 Days, respectively.

The rate of interest is 0.50 per cent higher for seniors on both the FDs. For the 375-days tenure, the rate of interest is 7.60 per cent, while for 444 days, it is 7.65 per cent. For the general public, the deposit rate is 7.10 per cent and 7.15 per cent, for 375 days and 444 days, respectively. The bank allows premature withdrawal or closure, but there is a penalty of 1 per cent on the applicable deposit rate.

The non-callable option available in 444 days FD will offer seniors a deposit rate of 7.75 per cent. However, this option does not allow premature closure or withdrawal, and the minimum deposit amount is Rs 15,00,001. Both these FDs are open for investment up to August 15, 2023.

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