444-Day FD Schemes Compared; SBI, BoB, Canara, IOB- Who Pays More?

In a bid to attract more retail investors, several leading public sector banks have rolled out special fixed deposit (FD) schemes with a 444-day tenure. These short-term deposits have quickly gained traction among cautious investors seeking better returns without market-linked risks. According to financial experts, the renewed focus on such mid-term FDs reflects banks’ efforts to mobilise funds as interest in traditional savings instruments makes a comeback. Here’s how some of India’s largest banks compare on rates and maturity values for these 444-day deposits.

Banks Revive Interest in Short-Term FDs

For decades, fixed deposits have been considered a safe and steady investment option for conservative savers. However, with rising participation in equities, mutual funds, and digital investment platforms, the FD segment has seen a relative dip in deposits. To counter this trend, banks have introduced short-tenure special schemes like the 444-day FD, offering returns slightly higher than standard deposit rates. Experts suggest this move aims to capture investors who prefer guaranteed returns over market volatility.

Interest Rates Across Leading Public Sector Banks

Several major public sector lenders have joined the 444-day FD trend. Currently, State Bank of India (SBI), Bank of Baroda (BoB), and Punjab & Sind Bank are offering 6.6% interest to general customers under their respective special deposit schemes. These competitive rates are part of limited-period offers designed to attract both new and existing customers.

Meanwhile, Indian Overseas Bank (IOB) and Indian Bank have marginally outperformed their peers with a rate of 6.7% for general depositors, making them the most rewarding among public sector offerings in this category. Canara Bank, on the other hand, offers 6.5%, slightly below the others but still higher than its regular short-term FD rates.

Maturity Value Comparison on ₹8.55 Lakh Investment

To understand the potential gains, consider an investment of ₹8.55 lakh in these 444-day schemes. Based on the current rates, the estimated maturity value for a general depositor varies slightly across banks:

• SBI, Bank of Baroda, and Punjab & Sind Bank: approximately ₹9,25,867, with total interest earned around ₹70,868.
  
  
  
• Indian Bank and Indian Overseas Bank: roughly ₹9,26,976, with interest of about ₹71,976, the highest among the group.
  
  
  
• Canara Bank: estimated maturity of ₹9,24,760, yielding interest of ₹69,760.
  
  

While the differences appear minor, experts note that even a small variation in interest rate can make a noticeable impact over multiple renewals or larger investment amounts.

Why 444 Days? The Logic Behind the Tenure

The unusual tenure of 444 days is not random. According to financial planners, such “non-standard” deposit durations are designed to optimise returns by aligning with banks’ internal liquidity and funding cycles. These unique tenures also help banks distinguish their products in a crowded FD market. Investors benefit from slightly higher interest compared to traditional one-year or two-year deposits, while retaining flexibility with a shorter lock-in period than long-term FDs.

Ideal for Conservative and Senior Investors

Experts highlight that these short-term FDs are particularly appealing to senior and super senior citizens, who usually receive an additional 0.5% to 0.75% interest over standard rates. The fixed income and predictable maturity timeline make them ideal for those who prefer low-risk instruments to preserve capital while earning modest but reliable returns. For younger investors, such FDs can act as a short-term parking option while they explore long-term avenues like mutual funds or bonds.

Balancing Returns and Stability

While equities and mutual funds often deliver higher long-term gains, fixed deposits continue to offer stability, making them a crucial part of a diversified portfolio. Financial experts recommend using special schemes like the 444-day FD for short-term financial goals, such as funding upcoming expenses or maintaining liquidity. However, they also advise comparing bank rates frequently, as FD interest structures can change with repo rate adjustments or liquidity conditions in the banking sector.

Disclaimer: This article is for informational purposes only. The interest rates and maturity values mentioned are indicative and subject to change. Readers are advised to verify the latest rates with their banks and consult a certified financial advisor before making any investment decisions.