Special Fixed Deposit Faceoff: What Rs 1 Lakh To Rs 5 Lakh Yields At Central & Union Bank

Special fixed deposit schemes are gaining attention for their limited-time higher interest rates and potential for better returns, especially among senior citizens. Unlike standard FDs, these schemes are designed to attract depositors with attractive rates over specific tenures. In this article, we compare two such ongoing offers from public sector banks—Central Bank of India and Union Bank of India. These comparisons will help you understand how much your money can grow depending on the bank, the tenure, and the amount deposited.

What Makes Special Fixed Deposits Stand Out

Special fixed deposits differ from traditional term deposits mainly in their tenure and interest benefits. They are often introduced for a promotional window, sometimes linked to festive seasons or internal business targets of the bank. According to experts, these schemes can offer better yields when compared to regular FDs, making them a compelling option for both senior citizens and general investors.

Central Bank of India: 1111-Day Special FD Offer

Central Bank of India is currently offering a 7.50% interest rate for senior citizens and 7.00% for others on a 1111-day fixed deposit. This makes it one of the most rewarding FD options in the market today for those looking for mid-term gains.

Expected Maturity Amounts for Different Deposits:

• Rs 1,00,000 Deposit: Senior citizens will receive Rs 1,25,379, while others will get Rs 1,23,519.
  
• Rs 2,00,000 Deposit: Maturity amount for seniors stands at Rs 2,50,759; general public will get Rs 2,47,038.
  
• Rs 3,00,000 Deposit: Senior citizens can expect Rs 3,76,138, while others will receive Rs 3,70,557.
  
• Rs 4,00,000 Deposit: Maturity values will be Rs 5,01,517 for seniors and Rs 4,94,076 for other depositors.
  
• Rs 5,00,000 Deposit: Returns go up to Rs 6,26,897 for senior citizens and Rs 6,17,595 for the rest.
  

Union Bank of India: 456-Day Special FD Scheme

Union Bank of India is offering a shorter tenure option at 456 days. The interest rates are slightly lower—7.35% for senior citizens and 6.85% for others. Despite the shorter duration, it serves as a good option for those looking for returns in a lesser time frame.

Expected Maturity Amounts for Different Deposits:

• Rs 1,00,000 Deposit: Senior citizens will receive Rs 1,09,526, while other investors get Rs 1,08,856.
  
• Rs 2,00,000 Deposit: Expected returns are Rs 2,19,052 for seniors and Rs 2,17,712 for general investors.
  
• Rs 3,00,000 Deposit: Maturity amount stands at Rs 3,28,578 for seniors and Rs 3,26,567 for others.
  
• Rs 4,00,000 Deposit: Returns are Rs 4,38,104 for senior citizens and Rs 4,35,423 for others.
  
• Rs 5,00,000 Deposit: Final corpus becomes Rs 5,47,630 for seniors and Rs 5,44,279 for non-seniors.
  

Which Option Offers Better Value?

While both options have their merits, the Central Bank of India’s 1111-day FD clearly offers higher returns, albeit with a longer lock-in period. Union Bank’s 456-day FD is better suited for investors who prefer quicker access to their funds but are willing to accept slightly lower yields. According to experts, the choice should depend on your liquidity needs and time horizon. Those planning for medium-term goals might find the 1111-day FD more beneficial.

Final Thoughts for Investors

Investors should always consider their financial goals, age, and risk tolerance before opting for any fixed deposit scheme. Special FDs offer better returns than regular ones, especially for senior citizens, but they also require locking in funds for a specific period. As interest rates fluctuate, locking in a higher rate now can be a smart strategy for those who can afford to stay invested for the full tenure.

Disclaimer: This article is for information purposes only. It is not intended as financial advice. Please consult a certified financial advisor before making any investment decisions.