Bank FD Rates: Being a senior citizen, safe investments are always a priority. Bank FDs are a reliable option. Nowadays, some small finance banks are offering great interest rates of up to 9.1% on three-year FDs. It is important to note that this interest rate is applicable only on FDs of less than Rs 3 crore. At a time when most banks are reducing interest on FDs, these banks are providing a good opportunity to senior citizens by giving more than 9% interest-

These banks are offering the highest interest rates-

Utkarsh Small Finance Bank: 9.1% interest rate

Northeast Small Finance Bank: 9% interest rate

Jana Small Finance Bank: 8.75% interest rate

Suryoday Small Finance Bank: 8.75% interest rate

Unity Small Finance Bank: 8.65% interest rate

Equitas Small Finance Bank: 8.25% interest rate

This time is considered right for investing in FDs because the Reserve Bank of India has cut the repo rate, and many big banks have reduced their FD interest rates.

Caution is necessary while investing in small finance banks-

Although deposits in small finance banks up to Rs 5 lakh are protected under the Deposit Insurance Credit Guarantee Corporation (DICGC), still be a little cautious while investing in these banks. Keep the investment amount within the coverage limit of DICGC so that in case of any untoward incident, your money can be returned.

Senior citizens can fill Form 15H to save TDS-

According to Budget 2025, now TDS will be applicable on the interest of more than ₹ 1 lakh on FD. However, if your total tax liability is zero, you can avoid this deduction by submitting Form 15H. It is important to note that Form 15H will be valid only if your tax liability after all allowed deductions (like Section 80C, 80D, etc.) is zero, even if your total income is more than ₹3 lakh. If you want a safe and good return for the next three years, this can be a great opportunity to invest in an FD.

Disclaimer: This content has been sourced and edited from Hr Breaking. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.