444-Day Special FD Plans By PSU Banks: Know Which Offers Highest Return On ₹5 Lakh Deposit

For those looking for secure and short-term investment options with guaranteed returns, fixed deposits remain a popular choice. Public sector banks have introduced limited-period special FDs—particularly the 444-day fixed deposit scheme—that offer higher interest rates compared to regular FDs. These schemes are aimed at both general depositors and senior citizens, with the latter receiving a slightly enhanced rate of return. According to experts, these offerings are especially attractive during periods of stable or declining interest rate cycles.

What Makes The 444-Day FD Scheme Special?

The 444-day fixed deposit is a tailored product that offers better-than-average returns without locking in funds for multiple years. Offered by major public sector banks, this deposit term allows customers to benefit from promotional interest rates while maintaining liquidity. These schemes often feature enhanced rates for senior citizens, recognising their need for steady income and safe investment avenues.

Currently, four prominent public sector banks—State Bank of India (SBI), Canara Bank, Indian Bank and Indian Overseas Bank (IOB)—are offering this 444-day scheme. While the deposit term is the same across banks, the interest rates and maturity amounts differ slightly depending on the institution and the depositor category.

Interest Rates Offered By Leading PSU Banks

Each of the four banks has set specific rates for both general citizens and senior citizens under this scheme. Here’s a breakdown of the interest rates offered:

• State Bank of India (SBI) offers 6.60% for general citizens and 7.10% for senior citizens.
• Canara Bank offers identical rates to SBI: 6.60% for regular customers and 7.10% for senior citizens.
• Indian Bank provides one of the highest rates, with 6.90% for regular customers and 7.40% for senior citizens.
• Indian Overseas Bank (IOB) offers 6.75% to the general public and 7.25% to senior citizens.

Although these rates might appear close, their impact on the maturity amount becomes noticeable when larger sums are invested.

Maturity Amount On A ₹5 Lakh Fixed Deposit

Assuming a ₹5 lakh deposit for 444 days, the maturity amounts vary depending on the bank and depositor category. Here’s what you can expect:

• SBI & Canara Bank
  
• Senior Citizens: ₹5,44,690
• General Citizens: ₹5,41,443
  
  
  
  
• Indian Bank
• Senior Citizens: ₹5,46,646
• General Citizens: ₹5,43,390
• Indian Overseas Bank
  
• Senior Citizens: ₹5,45,668
• General Citizens: ₹5,42,416

From the figures, it’s evident that Indian Bank offers the most lucrative returns, both for senior citizens and general investors. While the difference might appear marginal, over time or with higher investments, this slight advantage becomes financially meaningful.

Why Short-Term FDs Are Gaining Popularity

Short-term fixed deposits like the 444-day scheme are becoming increasingly popular among risk-averse investors who prefer predictability over market-linked fluctuations. According to experts, these schemes are particularly useful for those who want to temporarily park funds without risking their capital. Senior citizens, especially, are turning to these options as a safer alternative to equity markets, with assured returns that outpace traditional one-year term deposits.

Additionally, with interest rates expected to remain stable or gradually decrease in the near future, locking in funds at current elevated rates ensures better returns for the investment duration.

Choosing The Right FD Option For You

While all four banks provide similar features, selecting the right fixed deposit depends on your personal financial goals, liquidity requirements, and eligibility. If maximising returns is your priority, Indian Bank currently stands out as the preferred choice. On the other hand, those with longstanding relationships with SBI or Canara Bank may find value in convenience and service continuity.

Investors are also advised to review the latest interest rates before making a deposit, as these limited-period schemes are subject to revision or closure at the discretion of the banks.

For conservative investors looking for a balance between return and risk, the 444-day special FD schemes by PSU banks offer an appealing proposition. With rates exceeding those of regular deposits and the flexibility of a shorter term, these schemes fit well into a medium-term portfolio strategy. Whether you're a retiree seeking income stability or a young investor planning for a specific goal, these FDs can be a reliable addition to your financial plan.

Disclaimer: This article is meant for informational purposes only and does not constitute financial advice. Please consult a certified financial advisor or banking expert before making any investment decisions. The interest rates mentioned are as per current public disclosures and may be subject to change.