Many banks are offering attractive interest rates on fixed deposits (FDs) for senior citizens, with rates going above 8 per cent. If you are a senior citizen looking for higher returns on your FD investments, you can consider these banks. However, it is advisable to check the interest rate list of the banks before making your investment.
Fixed deposits (FDs) continue to be a popular and safe investment choice for many, particularly because they are free from the volatility of the stock market. FDs provide investors with fixed interest rates and assured returns, making them an ideal option for those who prefer low-risk investments. Among these investors, senior citizens often find FDs especially attractive, thanks to the additional benefits they offer.
Several banks in India are currently offering competitive interest rates on FDs. Senior citizens, in particular, enjoy higher interest rates compared to regular investors. This makes FDs a favored choice for those above 60 years of age. Presently, some banks are offering interest rates of over 8 per cent on three-year FDs for senior citizens.
Tax Benefits On FD Investment
Apart from attractive returns, senior citizens also enjoy tax benefits on FD investments. Under Section 80C of the Income Tax Act, 1961, they can claim a deduction of up to Rs 1.5 lakh on FDs with a lock-in period of five years. This dual benefit of higher returns and tax savings makes FDs an even more appealing investment for senior citizens.
Several banks are offering high-interest rates on three-year FDs for senior citizens, including both private and public sector banks.
Axis Bank FD Rates 2024
For instance, Axis Bank is offering an annual interest rate of 7.6 per cent for senior citizens. A deposit of Rs 1 lakh in Axis Bank for three years will grow to Rs 1,25,340.
Bandhan Bank FD Rates 2024
Bandhan Bank, another private sector bank, offers a slightly higher annual interest rate of 7.75 per cent. With this rate, a Rs 1 lakh FD will increase to Rs 1,25,895 after three years.