FD Rates: There is good news for senior citizens. If you want to earn good interest by investing your money safe place, some small finance banks are paying up to 9.1% interest on 5 years fixed deposit (FD). These rates are higher for senior citizens than ordinary citizens. In such a situation, it can be a good opportunity to invest.
Which banks are getting more interest?
Small Finance Bank’s interest rates
Sunrise 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
Jan Small Finance Bank – 8.2% interest
All these interest rates are for senior citizens and will be applicable to deposits up to Rs 3 crore.
Tax exemption is also possible
If you adopt the old tax system, then you can get a discount of up to Rs 1.5 lakh under Section 80C of the Income Tax Act on 5 -year tax saving FD. Apart from this, under Section 80TTB, senior citizens also get exemption on additional interest income of up to Rs 50,000. If the income from a person’s interest is more than Rs 1 lakh, then TDS (tax) can be deducted. But if your total income does not come under the scope of tax, then you can avoid TDS by filling Form 15H.
Caution is necessary
Keep in mind that DICGC (Deposit Insurance and Credit Guarantee Corporation) gives insurance on a deposit amount up to just Rs 5 lakh. Therefore, while investing in FD, you must see that your amount is in this limit. It is a good opportunity for senior citizens to put their money in safe and profitable options. However, before investing, take any decision keeping the bank’s credibility and its needs in mind.
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