Fixed Deposit Interest Rates: A Smart Investment Option
Are you considering investing in fixed deposits? If so, you’re in luck because there are some banks and NBFCs currently offering attractive interest rates of up to 9 percent on fixed deposits. While many banks have recently reduced their FD interest rates, a few still stand out by providing higher returns, especially for deposits under Rs 3 crore. This is particularly appealing for those under 60 years, as they can avail themselves of these competitive rates. Even better, senior citizens can enjoy an additional interest boost of 0.25% to 0.50%.
Top Banks Offering 9% Interest on Fixed Deposits
If you’re looking for banks that offer a 9% interest rate on three-year fixed deposits, here are some worth considering. North East Small Finance Bank leads the pack by providing a 9% interest rate for general customers. Following closely behind, Suryoday Small Finance Bank offers an 8.6% interest rate, while Utkarsh Small Finance Bank provides 8.5%. Jana Small Finance Bank and Unity Small Finance Bank also have competitive rates at 8.25% and 8.15%, respectively. Lastly, Equitas Small Finance Bank rounds out the list with an 8% interest rate on their three-year fixed deposits.
Understanding DICGC Coverage and Tax Benefits
It’s essential to know that deposits in small finance banks are insured up to Rs 5 lakh by the Deposit Insurance Credit Guarantee Corporation (DICGC). However, investing in these banks can carry some risks, so it’s advisable only to deposit amounts within this insurance limit to ensure your principal and interest are protected. Additionally, if your annual income is below Rs 2.5 lakh (or Rs 3 lakh for senior citizens), you can save on TDS by submitting Form 15G or Form 15H to your bank. This allows you to request that the bank does not deduct TDS from your FD interest income, making your investment even more beneficial.
SHOTRS COVERAGE.
Fixed Deposit Interest Rates
Several banks and NBFCs are currently offering attractive fixed deposit (FD) interest rates, with some providing up to 9% on FDs under Rs 3 crore. Notable institutions include North East Small Finance Bank (9%), Suryoday Small Finance Bank (8.6%), Utkarsh Small Finance Bank (8.5%), Jana Small Finance Bank (8.25%), Unity Small Finance Bank (8.15%), and Equitas Small Finance Bank (8%). Senior citizens enjoy an additional interest rate boost. Deposits are insured up to Rs 5 lakh by DICGC, and investors can avoid TDS through Form 15G or 15H if their income is below Rs 2.5 lakh.
