Senior citizen, looking to reap lucrative interest rates on fixed deposit may take note of the interest rates paid by 5 small finance banks.
)
Senior Citizen looking to earn higher returns on their savings can check out these top fixed deposit options with attractive interest rates.
These are short-term investment with high returns. These banks offer some of the best rates on five-year tenure FD on a capital of up to Rs 3 crore for senior citizen.
The banks offering between 8 and 9 percent interest rates are as follows:
Suryoday Small Finance Bank: up to 9.1% Unity Small Finance Bank: up to 8.65% NorthEast Small Finance Bank: up to 8.5% Utkarsh Small Finance Bank: up to 8.25% Jana Small Finance Bank: up to 8.2%
It must be noted that when interest earned by senior citizen (aged 60 years or more) crosses Rs 1 lakh in a financial year, banks are required to deduct Tax Deducted at Source (TDS), even if the individual’s actual tax liability is zero.
In the above circumstances, Form 15H --a self-declaration form that senior citizens aged 60 years-- can help avoid this deduction. Senior citizens can submit the form to their bank or financial institution declaring that their total income falls below the taxable limit.
As a result, banks are instructed not to deduct TDS from their interest earnings. This saves retirees from the inconvenience of filing returns just to claim a TDS refund.
Under the new income tax regime, if the total income of senior citizen does not exceed Rs 12 lakh in a financial year, they are eligible for a full rebate under Section 87A.
(Disclaimer: The article is meant for only informational purpose and is not intended to constitute financial advice to any person)
Newsletter
