FD Rates : There is good news for senior citizens. If you want to invest your money in a safe place and earn good interest, then some small finance banks are offering up to 9.1% interest on 5-year fixed deposits (FD). These rates are higher for senior citizens than for ordinary citizens. In such a situation, this can be a good opportunity for investment.
Which banks are getting more interest?
- Small Finance Bank Interest Rates
- Suryoday Small Finance Bank – 9.1% interest on 5 year FD
- Unity Small Finance Bank – 8.65% interest
- Northeast Small Finance Bank – 8.5% interest
- Utkarsh Small Finance Bank – 8.35% interest
- Jana Small Finance Bank – 8.2% interest
All these interest rates are for senior citizens and will be applicable on deposit amount up to Rs 3 crore.
Tax exemption is also possible
If you follow the old tax system, you can get a deduction of up to Rs 1.5 lakh on a 5-year tax saving FD under Section 80C of the Income Tax Act. Apart from this, senior citizens also get a deduction of up to Rs 50,000 on additional interest income under Section 80TTB. If a person’s interest income exceeds Rs 1 lakh, then TDS (tax) can be deducted. But if your total income does not fall under the tax bracket, then you can avoid TDS by filling Form 15H.
Caution is necessary
Keep in mind that DICGC (Deposit Insurance and Credit Guarantee Corporation) provides insurance only on deposit amount up to Rs 5 lakh. Therefore, while investing in FD, make sure that your amount is within this limit. This is a good opportunity for senior citizens to invest their money in a safe and profitable option. However, before investing, take any decision keeping in mind the credibility of the bank and your needs.
