Special fixed deposits with a 444-day tenure continue to attract depositors who want to lock in their money for a little over a year without taking market risk. According to reports from Zee Business, several public sector banks offer this tenure, but the interest rate varies significantly across institutions. Even a difference of 0.15-0.25 percentage points can change the maturity amount on a ₹20 lakh deposit. For senior citizens, the additional interest offered by banks can improve returns on large deposits, while regular customers can use such short- to medium-term FDs for goals where capital protection and predictable returns are more important than market-linked growth.
Central Bank of India offers the highest interest rates for senior citizens on its 444-day fixed deposit scheme. As reported by Zee Business, senior citizens receive 7.25% interest while other customers get 6.75%. On a ₹20 lakh investment, senior citizens would earn approximately ₹1,82,671 in interest and receive a total maturity amount of ₹21,82,671. Regular customers would earn ₹1,69,663 in interest and receive ₹21,69,663 as maturity amount. The bank's competitive rates make it a strong option for senior citizens seeking higher returns on their fixed deposits.
Recent analysis shows that for a ₹10 lakh investment, the estimated maturity values across major banks are as follows: Central Bank of India offers the highest at ₹10,84,832 (6.75% annual rate), followed by Punjab National Bank and Indian Overseas Bank at ₹10,82,886 each (6.60% annual rate). State Bank of India under its Amrit Vrishti scheme provides ₹10,80,944 (6.45% annual rate). The difference between the highest and lowest estimated maturity values is ₹3,888, highlighting the importance of rate comparison for large deposits.
Interest earned from fixed deposits is taxable according to the depositor's applicable income-tax slab, and TDS may apply depending on the amount of interest earned and prevailing rules. As reported by Zee Business, tax treatment needs to be considered when evaluating FD returns. The analysis shows that even small differences in interest rates can significantly impact the final maturity amount, making it crucial for investors to compare rates across different banks before making investment decisions. The 444-day tenure provides a balance between short-term and medium-term investment horizons for risk-averse investors, but investors should also compare premature withdrawal conditions, interest payout options, deposit insurance coverage and tax implications before booking an FD.
