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Fixed Deposit: There has been a huge decline in the stock market for the last few days. Due to this, the concern of investors has increased, due to which they are moving towards safe investment. In such a situation, FD i.e. Fixed Deposit is a good investment option for senior citizens. If you are thinking of investing, then let us quickly tell you about these banks in which you will get more than 9 percent interest.



Northeast Small Finance Bank
Northeast Small Finance Bank offers a higher interest rate of 9.50% for senior citizens on callable deposits below Rs 5 crore for tenures of 546 - 1111 days (1 year 6 months 1 day - 3 years 16 days). These rates are effective from June 25, 2024.



Suryoday Small Finance Bank
The bank offers the highest interest rate of 9.10% for senior citizens for tenures of 2 years to 3 years. These interest rates will be applicable from September 4, 2024.



Unity Small Finance Bank
Unity Small Finance Bank offers interest rates of 9.50% for senior citizens for a tenure of 1001 days and 9.25% for a tenure of 701 days. These rates are effective from October 7, 2024.


Utkarsh Small Finance Bank
Utkarsh Small Finance Bank offers interest rates of 9.10% for senior citizens for a tenure of 1001 days and 9.25% for a tenure of 1500 days. These rates are applicable from June 7, 2024.



Benefits of investing in FD

Banks offer FD schemes with different tenures for investment. Some bank schemes offer the facility of withdrawing money before maturity. Under Section 80C of the Income Tax Act, tax saving FDs get a maximum tax exemption of Rs 1.5 lakh in a financial year.



Only senior citizens get the benefit of tax-deduction on tax saving schemes under IT Act 80TTB section. Under this section, senior citizens get tax benefit up to a maximum of Rs 50,000 on interest earned on deposits (including FD) in both banks and post offices.


Many banks offer their investors facilities like secured credit card and overdraft on FD. Loan against FD is given in the form of overdraft which is a good option to meet financial needs at the time of financial emergency. That is, you can easily repay the loan amount taken on FD through installments and during this time your FD remains safe until the full loan is paid by you.


Not only this, TDS deducted by the bank does not eliminate the tax liability of FD investors. While TDS is deducted at the rate of 10% (20% for those who have not submitted PAN card), tax is levied on the interest income from FDs as per the tax slab of the investor.


Investors should not ignore liquidity and short term financial goals to meet their financial needs while choosing high interest paying FD tenure.