Fixed Deposits Interest Rate Latest Update: The senior citizens, who wish to reduce their tax liability, here we have various tax-saving fixed deposits that are the most popular choice for them. The tax-saving fixed deposit (FD) are prominent fixed income product for investors which allow for an annual deduction of up to Rs 1.5 lakh under Section 80C. However, 5 years of lock-in time is needed for tax-saving fixed deposits, and as the name implies, no premature withdrawals are permitted in this case.Also Read – SBI, Central Bank, Karur Vyasa Bank, IndusInd Bank Hike FD Interest Rates: Check New Rates Here
More significantly, the tax-saving fixed deposits are ideal for the senior citizens as they reduce their tax burden while simultaneously providing a steady source of income in the form of interest rates in their golden years. Also Read – Yes Bank Customers ALERT! Bank Hikes Penalty Rates On Premature Withdrawal Of Fixed Deposits
As per the I-T regulations, senior citizens are exempted from paying income tax for interest payments received on deposits up to Rs 50,000 under section 80 TTB. However, if the interest payments exceed the Rs 50,000 exempt limit in a fiscal year that is subject to TDS, then the senior citizens can minimize TDS deduction by filing Form 15H. Also Read – Kotak Mahindra Bank FD Rates Hiked! Check Latest Rates Here
In this context, the senior citizens can consider investing in a tax-saving fixed deposit as 3 private sector banks are offering inflation-beating returns of 7.50% on tax-saving fixed deposits.
Bandhan Bank on August 22, 2022 adjusted its interest rates and now the bank is now providing elderly residents with a fixed interest rate of 7.50% on tax-saving fixed deposits. However, the NRIs are not eligible for senior citizen rates, which are exclusively available to residents of India. It is available for those senior citizen who submit proof of age to the bank.
Yes Bank also adjusted the interest rates for the senior citizens August 10, 2022. After the revision, the bank is now giving elderly residents an interest rate of 7.50% on 5-year tax-saving fixed deposits. It is meant for senior citizens residing within India and an FD must be opened with at least Rs 10,000/-. As part of the scheme, the senior citizens have the option to receive quarterly payouts or reinvest their tax-saving fixed deposits, and they can also benefit from higher interest rates, tax exemptions, and YES Rewardz Points when they book Tax Saver FDs.
IndusInd Bank on August 12, 2022 modified fixed deposit interest rates for the senior citizens. The bank is now providing an interest rate of 7.50% on its Indus Tax Saver Scheme (5 years). Senior citizens who ae account holders in the bank can open a tax-saving FD account with IndusInd Bank by depositing a minimum amount of Rs. 10,000, up to Rs. 1.5 lakh per fiscal year.