Senior citizens looking to grow their savings have good news! Some banks are offering attractive fixed deposit (FD) rates of up to 8.25 per cent for a three-year term. This special rate is available for those aged 60 and above, with a maximum investment limit of Rs 3 crore.
Senior citizens can now enjoy some of the highest FD rates in the market. Here’s a look at the banks offering attractive fixed deposit options for those aged 60 and above:
Slice Small Finance Bank – Offers an impressive 8.25 per cent interest rate on fixed deposits with a three-year tenure, making it one of the top choices for senior savers.
Utkarsh Small Finance Bank – Provides 8.15 per cent interest on a three-year FD, giving retirees a safe and reliable way to grow their savings.
Jana Small Finance Bank – Offers up to 8 per cent interest on three-year fixed deposits, helping senior citizens earn steady returns over time.
Shivalik Small Finance Bank – Also provides up to 8 per cent interest on a three-year FD, making it a competitive option for long-term investments.
How does TDS work on bank FDs?
Banks are required to deduct Tax Deducted at Source (TDS) on fixed deposit (FD) interest if it exceeds Rs 1 lakh in a year in a particular bank. It’s important to remember that TDS is not an extra tax—you can claim it as a refund or adjust it against your total tax liability when filing your income tax return (ITR). If you’re eligible for a refund, you may also receive interest on that refund.
Why Banks Deduct TDS Even If You Don’t Owe Tax
Even if your annual income is below Rs 12 lakh and no income tax is payable, banks and financial institutions will still deduct TDS on fixed deposit interest. This happens because the law requires TDS deduction once the interest exceeds Rs 1 lakh for senior citizens. Banks don’t have information about your total tax liability, so they automatically deduct TDS whenever the threshold is crossed. To prevent this, senior citizens can submit Form 15H, which informs the bank that their income is below the taxable limit.
