5 Best 3-5 Year Fixed Deposits For Senior Citizens
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Investment
oi-Vipul Das
Senior Citizen Fixed Deposits (FDs) are term deposit schemes which fetch additional interest rates available to individuals over the age of 60 from leading banks. Apart from the additional rate of interest, which can go up to 0.50 percent higher than the general public, these fixed deposit accounts provide other advantages to senior citizens also such as loan against fixed deposits, tax benefits and so on. Senior citizens can choose from a variety of interest payout options, with interest being credited to the depositor’s savings account on a monthly, quarterly, half-yearly, or yearly basis. So if you are a senior citizen and want to invest for a medium term let’s say about 3 years to 5 years, here we have compiled top 5 banks which are currently promising best interest rates available in the market.
3 Year Fixed Deposits For Senior Citizens
For a three-year term, here are the top five bank fixed deposit interest rates for a deposit amount of less than Rs 2 Cr.
| Banks | Interest Rates in % | W.e.f. |
|---|---|---|
| Suryoday Small Finance Bank | 7.50% | 15.02.2021 |
| Ujjivan Small Finance Bank | 7.25% | 05.03.2021 |
| Equitas Small Finance Bank | 7.15% | 25.01.2021 |
| DCB Bank | 7.00% | 15.05.2021 |
| IndusInd Bank | 7.00% | 26.04.2021 |
| Source: Bank Websites |
5 Best 1-2 Year Fixed Deposits For Senior Citizens
5 Year Fixed Deposits For Senior Citizens
Here are the top five bank fixed deposit interest rates for a deposit of less than Rs 2 crore for a 5-year period.
| Banks | Interest Rates in % | W.e.f. |
|---|---|---|
| Suryoday Small Finance Bank | 7.75% | 15.02.2021 |
| Yes Bank | 7.50% | 10.05.2021 |
| Ujjivan Small Finance Bank | 7.25% | 05.03.2021 |
| RBL Bank | 7.10% | 07.05.2021 |
| DCB Bank | 7.00% | 15.05.2021 |
| Source: Bank Websites |
How To Get Higher Returns From Fixed Deposits Without Making Premature Withdrawal?
How interest earned from fixed deposits is taxed for senior citizens?
Under section 80C, any investor who invests in tax saver FDs for a 5-year lock-in period can claim a deduction on the deposit amount up to Rs 1.5 lakh. Investments in Post Office Time Deposits of 5 years are also eligible for a deduction under section 80 (C) of the Income Tax Act of 1961. TDS is deducted from the interest earned on these deposits based on the investor’s tax slab. Individuals must pay TDS if their gross interest received in a financial year crosses Rs 40,000. Section 80TTB allows senior citizens to claim a deduction of up to Rs 50,000 on interest received on fixed deposits. TDS can be avoided by filling out Form 15G (or Form 15H for senior citizens) and submitting it to the relevant bank or post office.
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