AB Bank's New 100-Day 'AB Century' FD: What Short-Term Savers Should Check First

AB Bank has launched a 100-day fixed deposit called 'AB Century', as reported by The Business Standard. It's a short-term FD, so your money stays locked for just over three months.

For savers, that means a quick way to park spare cash and earn a fixed return. The headline doesn't share the rate or the rules. So check those before you book.

Key takeaways

• AB Bank's 'AB Century' is a fixed deposit that runs for 100 days.
• The interest rate and minimum amount weren't part of the headline, so confirm them with the bank.
• A short FD suits money you'll need within a few months.
• Ask about early-exit penalties before you commit.
• Compare the rate with other short deposits on our interest rate tables.

How a 100-day fixed deposit works

A fixed deposit, or FD, is a simple deal with a bank. You hand over a lump sum. The bank pays you a fixed rate of interest. You get your money back on a set date.

With AB Century, that date is 100 days after you book the deposit. Your rate stays the same for the whole term. It won't change even if market rates move.

Short FDs are handy for money with a near-term job. Think of a school fee, a tax payment or a planned trip. You get more than a savings account pays, without locking cash for years.

What changes for savers

We don't know AB Bank's rate yet. So here's a worked example with sample rates only. These are not AB Bank's numbers.

Imagine you put ₹1,00,000 in for 100 days. The interest is roughly the amount, times the yearly rate, times 100 divided by 365.

Example yearly rate	Interest in 100 days	Total at maturity
3.0% (savings account)	₹822	₹1,00,822
6.0%	₹1,644	₹1,01,644
6.5%	₹1,781	₹1,01,781
7.0%	₹1,918	₹1,01,918

The figures are rounded and ignore tax. Banks may count interest a little differently. Still, the table shows the scale. A rate that's one point higher adds about ₹274 on ₹1,00,000.

Who is affected

The scheme mainly matters to people with spare cash sitting idle. That could be a bonus, sale proceeds or money set aside for a bill.

It's less useful if you may need the money suddenly. Breaking an FD early usually costs you part of the interest. Many banks also cut the rate they pay when you exit early.

It's also not a fit for long-term goals. For those, a 100-day lock means you'd have to reinvest again and again. You'd get whatever rates are on offer then.

One comfort for small savers: bank deposits are insured. The DICGC covers up to ₹5 lakh per depositor per bank, including interest.

What to do now

Don't book in a hurry. Run through this checklist first.

1. Ask AB Bank for the exact interest rate on AB Century.
2. Find out the minimum deposit amount.
3. Ask what penalty applies if you break the FD early.
4. Check whether the deposit renews by itself at maturity.
5. Compare the rate with other three-month options on our rate tables.

If you're short of cash later, breaking an FD isn't your only choice. Our instant loan guide explains other routes. For more savings news, visit the news hub.

Frequently asked questions

What is the AB Century fixed deposit?

It's a 100-day fixed deposit launched by AB Bank, according to The Business Standard. Details like the rate weren't in the headline, so confirm them with the bank.

Is a 100-day FD better than a savings account?

Usually it pays more, because the bank knows your money is locked in. The catch is you can't use it freely. Early exit may cost you part of the interest.

Is my money safe in a bank FD?

Deposits in banks are insured by the DICGC up to ₹5 lakh per depositor per bank. That limit covers your principal and interest together.