Many banks have increased fixed deposit (FD) interest rates for senior citizens. Five-year fixed deposits now offer excellent interest rates of up to 8.1%. This means your money will not only be safe but also earn substantial returns.
FD return: If you’re looking for a safe and high-yield investment option after retirement, there’s good news for you. Several small finance banks are offering the highest-ever fixed deposit (FD) interest rates for senior citizens. Some are offering attractive interest rates of up to 8.1% on FDs with a five-year term. This is higher than the average investor, allowing senior investors to enjoy a more assured and better return.
Who’s offering the highest interest?
According to data from Paisabazaar.com, Suryoday Small Finance Bank is offering senior citizens an interest rate of 8.1% on a 5-year fixed deposit. Jana Small Finance Bank is offering an 8% return on a 5-year fixed deposit. Furthermore, Utkarsh Small Finance Bank is offering up to 7.7% interest for senior investors.
| Bank Name | interest rate |
| Suryoday Small Finance Bank | 8.1% |
| Jana Small Finance Bank | 8.0% |
| Utkarsh Small Finance Bank | 7.7% |
What to keep in mind before investing?
Deposits in small finance banks are insured up to ₹5 lakh under the DICGC (Deposit Insurance Credit Guarantee Corporation). This means that in case of an unforeseen event, your FD amount and interest up to ₹5 lakh will be protected. However, experts advise senior citizens not to invest a large portion of their total savings in such banks. It is best to limit the investment amount to this insurance limit.
TDS and tax information
If a senior citizen earns more than ₹1 lakh in interest from a bank FD in a year, banks deduct TDS on the amount. However, if your total income is below the taxable limit, you can avoid TDS by filing Form 15H. Under the new tax regime for fiscal year 2025-26, annual income up to ₹12 lakh is exempt from tax. Therefore, those with income below this limit can get their TDS refunded.
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The post Senior citizens FD Rate: Good news! 5-year FDs offer up to 8.1% interest. Find out where you can get the best returns. first appeared on informalnewz.
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