FD Calculator: For investors who view stock market volatility as risky, special fixed deposit (FD) schemes offered by banks are a good option. They provide attractive returns. Investing Rs 10 lakh in a 444-day special FD scheme can yield significant earnings. This scheme is particularly appealing to those who can keep their funds in an FD for a period exceeding one year. Most public sector banks offer additional interest on FDs to senior citizens.

6.45% Interest with SBI’s ‘Amrit Vrishti’ Scheme

SBI offers a 444-day special FD scheme with an interest rate of 6.45%. This scheme is known as the ‘Amrit Vrishti’ scheme. Earnings from interest in this scheme are calculated based on quarterly compounding. An investment of Rs 10 lakh at an annual interest rate of 6.45% would generate Rs 64,500 in interest over one year. Upon maturity after 444 days, the total interest earned would amount to Rs 80,944.

6.60% Interest Rate with PNB’s Scheme

PNB’s 444-day special FD scheme offers an annual interest rate of 6.60%. This means an investment of Rs 10 lakh in this FD would yield Rs 66,000 in interest over one year. Upon maturity after 444 days, the total interest earned would be Rs 82,886. Consequently, after 444 days, the investor would receive a total of Rs 10,82,886.

Highest Returns with Central Bank’s FD Scheme

Central Bank of India’s 444-day special FD scheme offers an interest rate of 6.75%. This means that investing Rs 10 lakh in this scheme would generate Rs 67,500 in interest over one year. Upon the maturity of the scheme after 444 days, the interest earned will amount to ₹84,832. This means that after 444 days, the investor will receive a total of ₹10,84,832 from the scheme.

Understand tax rules before investing.

Before investing in bank fixed deposit (FD) schemes, it is essential to understand the tax rules applicable to the interest earned. Firstly, the interest income is taxable and is classified as 'income from other sources.' This amount is added to the investor's total income and is taxed according to their applicable tax slab. Being taxed based on one's tax slab means that investors falling into a higher tax bracket will be required to pay more tax.

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