Fixed deposits: SBI, HDFC Bank, 2 more banks' special FD schemes may close or slash rates after 31 March; check details

In preparation for a potential rate cut during the upcoming Reserve Bank of India (RBI) Monetary Policy Committee (MPC) meeting in April, financial experts advise investors to consider investing before March 31, 2025, to take advantage of higher interest rates.

Following the RBI's recent rate cut of 0.25% or 25 basis points in February, experts anticipate another rate cut around mid-2025, contingent upon inflation data, the US Federal Reserve's rate decision, and various global factors. 

According to a report from HDFC Mutual Fund, the RBI is expected to continue reducing the repo rate due to potential headwinds facing economic growth and the likelihood of inflation falling within the central bank's target range. The report also noted that there is a risk of global growth momentum slowing, especially with signs of softening economic conditions in the US.

Manish Banthia, CIO of Fixed Income at ICICI Prudential AMC, also anticipates that the Reserve Bank of India (RBI) will implement two more interest rate cuts to stimulate the Indian economy.

State Bank of India (SBI) and HDFC Bank are set to close their special fixed deposit schemes on March 31, 2025, which they had declared earlier. These schemes offer higher interest rates compared to the standard fixed deposits available for similar tenures at these banks. Investors looking to benefit from these elevated rates need to apply before the deadline. Both banks have made details about these special offerings available on their respective websites, highlighting the opportunity for investors to maximise their savings during this period. 

The special fixed deposits have been structured to provide distinct interest benefits. For a tenure of 2 years and 11 months, senior citizens can earn an interest rate of 7.85%, while others receive 7.35%. Additionally, for a tenure of 4 years and 7 months, both senior citizens and other investors are offered an interest rate of 7.9%. These rates are notably advantageous, particularly for those in the senior citizen bracket, providing a financial edge over standard offerings. 

HDFC Bank

HDFC Bank's special fixed deposits are specifically designed to offer higher returns when compared to other fixed deposits of similar tenures at the bank. This makes them an attractive investment option for those seeking to optimise their returns in the fixed deposit market. Furthermore, the schemes provide flexibility through monthly or quarterly pay-out options, enabling depositors to maintain a regular income stream while reaping interest benefits. 

SBI 

SBI's special fixed deposits, known as Amrit Kalash and Amrit Vrishti, also close on 31 March 2025. These schemes have been introduced with the strategic intent of maximising savings for investors in a competitive interest rate environment. The attractive rates, combined with the flexibility in pay-out options, are part of the banks’ efforts to appeal to a broad range of customers seeking reliable and higher-yielding investment alternatives. 

Punjab & Sind Bank

Punjab & Sind Bank is offering a range of special fixed deposit (FD) schemes with varying tenures and interest rates. For a tenure of 333 days, the bank offers an interest rate of 7.2% for general citizens and 7.7% for senior citizens. A 444-day tenure provides an interest rate of 7.3% for general citizens and 7.8% for senior citizens. For a 555-day callable FD, the interest rate is 7.45% for general citizens and 7.95% for senior citizens, while the non-callable option offers 7.5% and 8% respectively. A 777-day tenure comes with an interest rate of 7.25% for general citizens and 7.75% for senior citizens. For 999 days, the callable option gives 6.65% for general citizens and 7.15% for senior citizens, whereas the non-callable option provides 7.4% and 7.9% respectively. These rates are valid until March 31, 2025, as per the bank's website.

Callable fixed deposits allow premature closure or partial withdrawals, while non-callable deposits allow withdrawal only on maturity, except in specific circumstances like death or bankruptcy. Non-callable deposits generally offer higher interest rates than callable ones.

The rates for senior citizens:

7.70 per cent for 222 days

7.80 per cent for 333 days

7.95 per cent for 444 days

7.75 per cent for 777 days

7.15 per cent for 999 days

The rates for super senior citizens:

7.85 per cent for 222 days

7.95 per cent for 333 days

8.10 per cent for 444 days

7.90 per cent for 777 days

7.30 per cent for 999 days.

IDBI Bank

IDBI Bank is also offering a special FD scheme called Utsav Callable FDs, with the last date to invest being March 31, 2025. The scheme is available in five tenures with different interest rates. For 300 days, the interest rate is 7.05% for general citizens and 7.55% for senior citizens. A 375-day tenure offers 7.25% for general citizens and 7.75% for senior citizens. For 444 days, the rates are 7.35% for general citizens and 7.85% for senior citizens. A tenure of 555 days provides 7.4% for general citizens and 7.9% for senior citizens, while a 700-day tenure offers 7.2% for general citizens and 7.7% for senior citizens.

Additionally, Indian Bank is offering the IND Supreme 300 Days and IND Super 400 Days FDs, with March 31, 2025, being the last date to invest. The IND Supreme 300 Days scheme provides an interest rate of 7.05% for general citizens and 7.55% for senior citizens. The IND Super 400 Days scheme offers 7.3% for general citizens and 7.8% for senior citizens.

Rates for senior citizens:

7.55 per cent for 300 days

7.75 per cent for 400 days

7.85 per cent for 444 days

7.90 per cent for 555 days

8.05 per cent for 700 days

Rates for super senior citizens:

7.55 per cent for 300 days

7.90 per cent for 400 days

8.00 per cent for 444 days

8.05 per cent for 555 days

7.85 per cent for 700 days

 All these banks have strategically positioned these schemes in the market to attract investors by offering heightened interest rates that are competitive and promising. The emphasis on senior citizens reflects an understanding of this demographic's need for stable income sources with good returns. Interested investors are urged to apply before the schemes close, as these fixed deposits represent a limited-time opportunity to secure favourable interest rates and enhance savings.