State-owned banks are offering competitive returns on special-tenure fixed deposits, outperforming standard term deposits. According to reports from Mint, the Central Bank of India leads the pack with the highest interest rate of 6.75% on its 444-day deposit, effective from 10 May 2026. Punjab National Bank and Indian Overseas Bank follow closely with 6.60% interest rates, both applicable from 1 June 2026 and 15 May 2026 respectively. SBI and Bank of Baroda offer 6.45% rates, while Canara Bank provides 6.50% on its 444-day fixed deposit. The latest analysis confirms these rates as of August 2026, with Central Bank of India maintaining its position as the highest-yielding option among PSU banks.
For a ₹5 lakh investment in these 444-day FD schemes, the returns vary significantly across banks. As reported by Mint, the Central Bank of India would provide the highest maturity amount due to its 6.75% interest rate, yielding approximately ₹42,416 interest and a total maturity amount of ₹5,42,416. Punjab National Bank and Indian Overseas Bank would offer approximately ₹33,000 interest each, totaling ₹5,41,443 maturity amounts. Canara Bank would provide ₹32,500 interest and a ₹5,40,795 maturity amount. SBI and Bank of Baroda would yield around ₹32,250 interest each, resulting in ₹5,40,472 maturity amounts. The detailed breakdown shows the Central Bank of India offering the highest estimated maturity value of ₹5,42,416, followed by PNB and Indian Overseas Bank at ₹5,41,443 each.
According to the report, Central Bank of India's 444-day deposit is offered under its 'Amrit Vrishti' scheme, while Bank of Baroda's special deposit falls under its 'BoB Square Drive Deposit Scheme'. Canara Bank's 444-day fixed deposit carries an interest rate of 6.50% for general citizens, effective from 17 March 2026. The 444-day FD scheme is a popular choice for general citizens seeking higher yields over a 14.5-month horizon with quarterly compounding benefits. These schemes are designed for cumulative FDs with quarterly compounding assumptions, though actual maturity amounts may vary depending on each bank's specific terms and conditions.
Based on the latest analysis from Mint, the Central Bank of India continues to offer the highest returns among PSU banks at 6.75%, followed by Punjab National Bank and Indian Overseas Bank at 6.60% each. Canara Bank provides 6.50% returns, while SBI and Bank of Baroda offer 6.45% rates. The difference between the highest and lowest estimated maturity values is ₹1,944, highlighting the significance of choosing the right bank for this investment. Investors should note that actual FD maturity amounts can vary depending on the bank's applicable compounding method, payout options, and specific deposit terms. The rates are based on August 2026 figures and may change, so investors should confirm applicable rates with respective banks before booking deposits.
