Fixed Deposits: Earn up to 8.61% interest on Special FDs

financialexpress.com:

Fixed Deposits (FDs) have long remained a preferred choice of risk-averse investors and senior citizens who do not wish to take high risks and want to avoid market volatility. There are many types of fixed deposits, including Standard Fixed Deposit, Regular Income Fixed Deposit, Tax Saving Fixed Deposit and Senior Citizen Fixed Deposit.

Another category, Special FDs refer to fixed deposit schemes offered by banks or financial institutions that come with unique features or benefits beyond regular fixed deposits. Special FDs can be useful if you are looking for higher returns on your investments. These might include higher interest rates, special terms, or additional perks.

Here are a few things investors should know about special fixed deposits:

Some banks offer special fixed deposit schemes with higher interest rates compared to regular FDs. These rates may be applicable for specific tenures or for a limited time as part of promotional offers.

Also Read: Mutual Funds vs FDs vs Savings Accounts vs Others: Where do Indians save their money today?

Banks often come out with special FD schemes for senior citizens with higher interest rates than those offered to regular investors. These schemes may also have additional benefits such as monthly interest payouts.

The interest earned from fixed deposits is generally taxable as per the investor’s income tax slab. Ensure you are aware of the tax implications associated with the special FD scheme you choose. However, senior citizens get tax benefits.

Some special fixed deposits may have lock-in periods or penalties for premature withdrawals. Understand the terms and conditions regarding withdrawals to avoid any unexpected charges.

Ensure that the bank or the institution offering