Latest Bank FD rate for senior citizens: Senior citizens can get interest rates up to 9.1% on bank fixed deposits (FDs). There are many banks that are offering high interest rates on FDs for amounts less than Rs 3 crore and tenure of 5 years. Let’s know which banks are offering high interest rates to senior citizens…
Bank FD rate for senior citizens: If you are a senior citizen and are thinking of investing in Fixed Deposit (FD), then there is good news for you. Some banks are offering up to 9.1% interest on 5-year FD, which can give great returns on your money. However, some banks have started reducing interest rates after the RBI cut the repo rate by 0.25% on 7 February 2025. But still some banks are offering better interest rates. Let’s know the complete list of those banks.
Latest Bank FD rate for senior citizens
Bank offering 9.1% interest
Suryoday Small Finance Bank: This bank is giving 9.1% interest on 5-year FD.
Bank giving 8.65% interest
Unity Small Finance Bank: In this bank, 8.65% interest is being given on 5-year FD.
Bank giving 8.5% interest
NorthEast Small Finance Bank: Here senior citizens are getting 8.5% interest.
Bank giving 8.35% interest
Utkarsh Small Finance Bank: In this bank, 8.35% interest is being given on 5-year FD.
Bank giving 8.2% interest
Jana Small Finance Bank: Here senior citizens are getting 8.2% interest.
Source: Paisabazaar (12 February 2025)
5-year FD will get tax benefit in the old tax system
If a senior citizen files his ITR under the old tax system, then investing in a 5-year FD can be beneficial for tax saving.
Benefit of tax deduction up to ₹ 1.5 lakh under section 80C
Tax exemption on interest up to ₹ 50,000 under section 80TTB
However, senior citizens who choose the new tax system will not get this exemption. So before investing, decide which tax system will be right for you.
Note: Interest income on 5-year FD will be taxed, which will be decided according to your income tax slab.
Take these precautions before investing in small finance banks
DICGC insurance cover: Deposits in small finance banks are insured up to ₹ 5 lakh.
Understand the risk: These banks have a different business model, due to which the risk may be slightly different than normal banks.
Invest smart: Invest in FDs only under DICGC insurance cover, so that your principal and interest are safe.
In such a situation, if you are a senior citizen and want to get higher returns before the interest rates fall, then these 5-year FD plans can be a good option for you. But before investing, choose the bank carefully and also pay attention to the risk factors.
