Senior Citizens can claim tax deduction up to Rs 50,000 under Section 80TTB of the Senior Citizens Act. This deduction applies to interest income earned from various sources including bank FDs.
New Delhi: Many people want to invest, but due to fear of unsafe investment, they are not able to invest their money anywhere. Today we are going to tell you about some fixed deposit schemes with safe investment and high returns for people above 60 years of age, which are completed in a period of 5 years. Interest is also being given on these at the rate of 8.75 percent. Please note that these interest rates apply to fixed deposits of less than Rs 3 crore.
Highest interest rates on these banks
- Suryodaya Small Finance Bank is offering an interest rate of 8.75% on its FDs maturing in five years.
- Unity Small Finance Bank is offering an interest rate of 8.65% on its FDs maturing in five years.
- Utkarsh Small Finance Bank is offering an interest rate of 8.35% on its FDs maturing in five years.
- AU Small Finance Bank is offering an interest rate of 7.75% on its FDs maturing in five years.
- At the same time, Equitas Small Finance Bank is offering an interest rate of 7.75% on its FDs maturing in five years.
- Apart from this, Jana Small Finance Bank is also offering an interest rate of 7.75% on its FDs maturing in five years.
- Ujjivan Small Finance Bank is offering an interest rate of 7.7% on its FDs maturing in five years.
It is important to know this before investing
Under the Senior Citizens Act 80TTB, you can claim a tax deduction of up to Rs 50,000. This deduction applies to interest income earned from various sources including bank FDs. Apart from this, this deduction of up to Rs 50,000 is the limit for the total interest income of deposits kept in banks, post offices and banking cooperative societies (both savings and FD accounts).
Insurance from DICGC
Let us tell you that small finance banks are different from other commercial banks. In such a situation, the fixed deposits of small finance banks cannot be compared with full-fledged banks. However, when it comes to insurance, keep in mind that deposits in small finance banks are also insured up to Rs 5 lakh by the Deposit Insurance Credit Guarantee Corporation (DICGC).
