With recent stock market fluctuations, many investors are moving towards safer options like Fixed Deposits (FDs). FD is a reliable investment choice, especially for senior citizens, offering attractive interest rates that can go over 9%. Here are some top banks offering competitive rates for senior citizens:
Latest FD Interest Rates for Senior Citizens
- North East Small Finance Bank
- Interest Rate: 9.50% for 546 – 1111 days (1 year 6 months 1 day – 3 years 16 days)
- Effective Date: June 25, 2024
- Suryoday Small Finance Bank
- Interest Rate: 9.10% for a term of 2 to 3 years
- Effective Date: September 4, 2024
- Unity Small Finance Bank
- Interest Rate: 9.50% for 1001 days and 9.25% for 701 days
- Effective Date: October 7, 2024
- Utkarsh Small Finance Bank
- Interest Rate: 9.10% for 1001 days and 9.25% for 1500 days
- Effective Date: June 7, 2024
Benefits of Investing in FD
- Flexible Terms: Banks offer a range of FD tenures, allowing investors to choose based on their needs. Some banks also allow premature withdrawal in case of financial emergencies.
- Tax Savings: Tax-saving FDs offer deductions under Section 80C of the Income Tax Act, allowing up to ₹1.5 lakh in tax deductions annually. Additionally, senior citizens can avail tax deductions up to ₹50,000 under Section 80TTB on interest income from FD in banks or post offices.
- Loan and Credit Options: Many banks offer secured credit cards or overdraft facilities against FDs, allowing investors to meet financial emergencies without breaking their FD. Loan repayment options are flexible, and the FD remains secure until the loan is fully repaid.
- TDS Deduction: Banks deduct TDS on FD interest at 10% (20% without PAN). However, the actual tax liability depends on the investor’s tax slab, so it’s essential to account for this while planning.
- Liquidity Consideration: When choosing an FD tenure, investors should assess liquidity requirements and short-term goals to ensure the FD aligns with their overall financial plans.
FDs remain a popular, low-risk investment, particularly for senior citizens, offering stable returns and a variety of term options to suit individual needs.
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