Special vs Regular FDs: Which Earns You More?

Banks offer 'special' FDs at higher interest rates for select tenures like 333, 400, or 555 days. If you pick the wrong FD type, you could miss out on hundreds of rupees in interest every year.

Here's what happened: Special FDs are fixed-tenure deposits — typically odd durations like 300, 400, or 555 days — where banks offer 0.25% to 0.75% higher interest than regular FDs.. Regular FDs follow standard tenures (1 year, 2 years, 5 years) and earn the baseline rate, which is currently in the 6.5%–7.25% range across most large banks.. Senior citizens get an additional 0.25%–0.50% on both types, making special FDs particularly attractive for retirees parking large lump sums..

What you should do: Compare special FD rates on your bank's website right now — look for tenures like 333, 400, 444, or 555 days which often carry the highest rates.. Check if your investment horizon matches the special FD tenure — breaking an FD early typically costs you 0.5%–1% penalty, wiping out your extra gains.. If you are a senior citizen, ask specifically for the senior special FD rate — the combined premium can push your return above 8% at some banks..

Small finance banks like Unity, Suryoday, and Jana often offer special FD rates of 8.5%–9% — far higher than PSU banks — and deposits up to ₹5 lakh are fully insured by DICGC.