Elderly investors across the nation are currently receiving substantial benefits on their fixed deposit accounts compared to regular depositors. Generally, banks provide an additional advantage of up to half a percent more to senior citizens. At present, certain financial institutions are offering bumper interest rates ranging from eight percent up to eight and a half percent on fixed deposit accounts for older individuals.
Suryaoday Small Finance Bank Leads With Highest Returns
Compared to traditional banks, small finance banks typically offer higher interest rates to their customers. These institutions are providing remarkable interest rates of up to 8.50 percent on five-year fixed deposit accounts specifically for senior citizens. Among them, Suryaoday Small Finance Bank is providing the maximum interest rate of 8.50 percent on a five-year fixed deposit scheme for senior citizens.
Interest Rates Offered by Other Small Finance Banks
Apart from Suryaoday Small Finance Bank, several other institutions are offering competitive rates. Jana Small Finance Bank provides an 8.00 percent interest rate on a five-year fixed deposit account for elderly investors. Additionally, Ujjivan Small Finance Bank offers a 7.70 percent interest rate, while Utkarsh Small Finance Bank and Equitas Small Finance Bank both offer 7.50 percent interest on five-year fixed deposit schemes. It is important to note that these interest rates for five-year fixed deposits apply strictly to investments amounting to less than three crore rupees.
Important Regulations Regarding Tax Deductions
Regarding taxation rules for senior citizens, if the interest earned from fixed deposits in any single financial year exceeds one lakh rupees, a ten percent tax deduction at source is applied to the earned interest. Furthermore, if an account holder does not possess a permanent account number, this deduction increases to twenty percent. Investors can claim a refund for the deducted tax or adjust it against their total tax liability while filing their income tax returns.
