Senior Citizens Can Earn Up to 8.05% on Fixed Deposits for Five Years
FD rate up to 8.05% for senior citizens investing for five years; Know list of banks
The Economic Times
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Several banks are offering fixed deposit (FD) interest rates of up to 8.05% for senior citizens aged 60 and above for a five-year tenure. Notably, Suryoday Small Finance Bank leads with this rate, while other banks offer lower rates. Senior citizens can also avoid TDS deductions by submitting Form 15H if their income is below taxable limits.
- 01Suryoday Small Finance Bank offers the highest FD rate of 8.05% for senior citizens.
- 02Other banks like Jana Small Finance Bank and AU Small Finance Bank offer lower rates of 7.77% and 7.25%, respectively.
- 03Senior citizens can submit Form 15H to avoid TDS on FD interest if their income is below taxable limits.
- 04TDS is deducted if interest from FDs exceeds ₹1 lakh annually.
- 05Deposits in small finance banks are insured up to ₹5 lakh by the DICGC.
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Senior citizens in India can benefit from attractive fixed deposit (FD) interest rates, with some banks offering rates as high as 8.05% for a five-year tenure. Suryoday Small Finance Bank leads this offering, while Jana Small Finance Bank provides a lower rate of 7.77%. Other banks, such as AU Small Finance Bank and Equitas Small Finance Bank, offer rates ranging from 6.25% to 7.50%. It is important for senior citizens to be aware of tax implications, particularly regarding Tax Deducted at Source (TDS). Banks are required to deduct TDS if the interest earned exceeds ₹1 lakh in a financial year. However, senior citizens can avoid this deduction by submitting Form 15H if their total income is below the taxable limit. The DICGC insures deposits in small finance banks up to ₹5 lakh, but experts recommend limiting exposure to mitigate risks associated with these banks. Overall, these high FD rates provide a significant opportunity for senior citizens to enhance their savings.
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These high FD rates provide senior citizens with an opportunity to secure better returns on their savings, enhancing their financial stability.
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