444-Day Special FD Returns Compared: Which PSU Bank Grows Rs 7.77 Lakh the Most?

Public sector banks are once again in focus after launching 444 day special FD schemes offering interest rates higher than regular term deposits. With equity markets witnessing volatility and retail investors seeking predictable returns, these short-tenure fixed deposits have emerged as a tactical parking option. 

As of December 9, major PSU banks including State Bank of India, Bank of Baroda, Indian Overseas Bank, Canara Bank and Punjab & Sind Bank are offering these limited-period deposits. 

The schemes target general investors as well as senior and super senior citizens with enhanced rates, making the 444 day special FD a key talking point in personal finance circles.

Why Are PSU Banks Pushing 444-Day FDs Now?

Banks have been under pressure to mobilise low-cost deposits as credit growth continues to outpace deposit growth. According to the RBI’s “Scheduled Commercial Banks’ Statement of Position in India”, released on November 22, 2024, Serial No. 53, deposit growth stood at 13.5 percent year on year, while credit growth was over 16 percent. The report is available on the RBI website under Weekly Statistical Supplements.

To counter this gap, PSU banks have rolled out special tenures like the 444 day special FD, offering interest rates between 7.25 percent and 7.75 percent for general citizens. Zee Business, in its December 9 report, highlighted that these schemes are designed to retain depositors amid growing preference for mutual funds and equities.

Adding to this, LoansJagat, in its fixed deposit market analysis published on September 18, 2024, reported that nearly 62 percent of new retail FD investments in Q2 FY25 were parked in special-tenure deposits below 500 days, indicating a clear shift toward short-term, high-yield instruments among Indian savers.

Interest Rates Offered by PSU Banks
 

Rates compiled from official bank disclosures and Moneycontrol reports dated December 8 and 9

How Much Will Rs 7.77 Lakh Grow in 444 Days?

Based on the prevailing interest rates and assuming annual compounding, the estimated maturity values for an investment of Rs 7.77 lakh are as follows. 
 

Punjab & Sind Bank currently offers the highest return among PSU banks under the 444 day special FD, according to December 9 data.

What Developments Led To The Current FD Rate Scenario?

Over the past six months, PSU banks have repeatedly adjusted deposit rates following cues from the Reserve Bank of India’s monetary policy stance. While the RBI has maintained the repo rate at 6.5 percent since February 2023, liquidity conditions have tightened. 

The RBI Monetary Policy Report, October 2024, Serial No. MPR-102024, noted rising competition for deposits among banks. This report is accessible under the “Monetary Policy” section on rbi.org.in.

Earlier in November, State Bank of India reduced interest rates on select bulk deposits, as reported by The Economic Times on November 27, 2024, prompting other banks to protect retail deposits through special tenure schemes.

Conclusion

The 444 day special FD has emerged as a competitive short-term deposit option among PSU banks. As of December 9, Punjab & Sind Bank offers the highest estimated return on Rs 7.77 lakh, though investors should verify rates before investing.
 

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