999-Day FD Returns Compared: Which Bank Offers More On ₹2 Lakh To ₹6 Lakh Deposits?

For Indian savers looking for safer investment options with moderate returns, fixed deposits (FDs) remain a preferred choice. While traditional FDs offer standard tenures and rates, several public sector banks are now offering special fixed deposits with unique durations such as 999 days. These tailor-made schemes come with slightly higher interest rates than regular FDs and are particularly attractive to senior citizens, who enjoy additional interest benefits. According to financial experts, comparing such offerings can help investors optimise their returns even within conservative instruments.

What Makes 999-Day FDs Unique?

Unlike standard 1-year, 3-year or 5-year fixed deposits, special tenure FDs are structured to appeal to investors seeking something different from conventional terms. The 999-day deposit is one such example where banks offer slightly enhanced rates. These deposits are time-bound promotional products and are typically launched to attract fresh deposits or rebalance liability portfolios.

While regular FDs might offer interest rates ranging from 6% to 6.5% for general customers, these special schemes can offer 0.20%–0.50% more. For senior citizens, the benefit is even greater as most banks add a further premium on the base rate.

Central Bank Of India’s 999-Day Special FD

One of the prominent public sector banks, Central Bank of India, currently offers a 999-day fixed deposit with attractive rates. As per the bank’s current structure:

• Senior citizens receive 7% interest

General category depositors get 6.50% interest

Based on these rates, here is the maturity value for investments between ₹2 lakh and ₹6 lakh:

• For ₹2 lakh:
  
  
  
• Senior citizens: ₹2,41,833

Others: ₹2,38,600

For ₹4 lakh:

• Senior citizens: ₹4,83,667
  
  
  
• Others: ₹4,77,201
  
  
  

For ₹6 lakh:

• Senior citizens: ₹7,25,500
  
  
  
• Others: ₹7,15,802
  
  
  

Experts suggest this FD may suit investors looking for fixed returns slightly above standard deposits, especially those in retirement planning mode or parking surplus funds for the medium term.

Bank Of India’s Competitive 999-Day Offer

In comparison, the Bank of India also offers a 999-day FD with a marginally higher interest rate than Central Bank’s scheme:

• Senior citizens receive 7.20% interest

General depositors receive 6.70% interest

Here’s how the maturity values compare for the same investment sizes:

• For ₹2 lakh:
  
  
  
• Senior citizens: ₹2,43,138
  
  
  
• Others: ₹2,39,889

For ₹4 lakh:

• Senior citizens: ₹4,86,275
  
  
  
• Others: ₹4,79,778
  
  
  

For ₹6 lakh:

• Senior citizens: ₹7,29,413

Others: ₹7,19,667

As seen above, Bank of India’s scheme provides slightly better maturity amounts, particularly for senior citizens. Financial analysts note that over medium-term durations such as 999 days, even a 0.2%–0.3% difference in rates can lead to a notable difference in maturity proceeds.

Which Bank Offers Better Value?

When comparing both banks purely on returns, Bank of India’s FD edges out its competitor by offering slightly higher maturity values across all deposit amounts and categories. While the gap might seem small on paper, it becomes more meaningful for larger deposits and senior citizen accounts where interest premiums are higher.

However, investment advisors caution that before selecting a bank FD, one should also consider ease of banking, service quality, early withdrawal penalties, and whether the customer has existing accounts or relationships with the bank. These factors can influence the convenience and net yield of the investment.

Things To Keep In Mind Before Investing

Experts recommend considering the following before locking funds into any fixed deposit:

• Always compare interest rates across banks for similar tenures
  
  
  
• Senior citizens should look for schemes with additional rate benefits
  
  
  
• Check if the FD allows premature closure and under what conditions
  
  
  
• Look for compounding frequency—quarterly compounding may provide slightly better returns than annual
  
  
  
• Ensure that the FD fits your overall asset allocation and liquidity needs

Special FDs such as the 999-day deposit are often available for a limited time, and rates may change depending on the Reserve Bank’s monetary policy stance. Therefore, it’s advisable to act quickly once you've made an informed choice.