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Time of India
2 days ago
- Business
- Time of India
FD rate up to 8.4% for senior citizens investing for five years; Know the list of banks
Some banks are continuing to offer up to 8.4% interest on fixed deposits (FDs) for senior citizens (age 60 years and above) for a five- year term with a maximum limit of Rs 3 crore. Read below to find the list of banks that offer FD interest rates up to 8.4%. Bank FD interest rate for senior citizens FD rate up to 8.4% Suryoday Small Finance Bank provides an 8.4% interest rate on fixed deposits with a five-year tenure. FD rate up to 8.25% for senior citizens slice Small Finance Bank is offering 8.25% interest rate on FD with five-year term for senior citizens. Bank Name Interest rate Suryoday Small Finance Bank 8.4% slice Small Finance Bank 8.25% Jana Small Finance Bank 8% Source: as of August 13, 2025 FD rate up to 8% Jana Small Finance Bank is offering up to 8% interest rate on FD for a five-year tenure. Disclaimer: While deposits in small finance banks are insured by the Deposit Insurance Credit Guarantee Corporation (DICGC) up to Rs 5 lakh, experts advise investors to exercise caution when investing in their FDs. Given their unique business model, the risk associated with investing in small finance bank FDs might differ slightly from that of scheduled commercial banks. To mitigate potential risks, it's recommended that investors limit their exposure to small finance bank FDs to an amount that falls within the DICGC coverage. This ensures that their principal and interest are protected in unforeseen circumstances. When is TDS deducted from bank FDs? Banks are required to deduct tax deducted at source (TDS) if the interest from a fixed deposit (FD) exceeds Rs 1 lakh in a particular bank. Remember, TDS isn't an additional tax; you can reclaim it as a refund or offset it against your total tax liability when you file your income tax return (ITR). Also, if you are eligible for a tax refund, you might also qualify for interest on that refund. For example, if a senior citizen has an income of Rs 11 lakh, they won't have to pay income tax thanks to the Section 87A tax rebate under the new tax regime for FY 2025-26. The Section 87A tax rebate applies to income up to Rs 12 lakh under the new tax regime for FY 2025-26. Additionally, a senior citizen can submit Form 15H to avoid TDS deduction, if their total income, after claiming all tax deductions and the Section 87A rebate, is below the taxable limit, which is Rs 12 lakh for the new tax regime or Rs 5 lakh for the old tax regime. Even though no income tax is charged on annual income below Rs 12 lakh, banks and other financial institutions will still deduct TDS. This is because the law requires them to deduct TDS once the interest/income amount surpasses a certain limit, which is Rs 1 lakh for senior citizens. Banks are not aware of individual tax liabilities and will deduct TDS whenever the annual interest exceeds Rs 1 lakh. Hence submit Form 15H to let the banks know.
Time of India
24-06-2025
- Business
- Time of India
Highest FD interest rate up to 9%; These 5 banks are offering the highest fixed deposit interest rate now
Several banks have reduced fixed deposit rates following the Reserve Bank of India's repo rate cut. However, some small finance banks still offer interest rates above 8% for regular citizens. Slice Small Finance Bank provides 9% on specific tenures. Unity, Suryoday, Utkarsh, and Jana Small Finance Banks offer rates up to 8.60%, 8.40%, 8.25%, and 8.20% respectively. Tired of too many ads? Remove Ads FD rate up to 9% FD rate up to 8.60% FD rate up to 8.40% Tired of too many ads? Remove Ads FD rate up to 8.25% FD rate up to 8.20% Bank Fixed Deposit Rates Bank Name Interest Rates (p.a.) Highest slab 1-year tenure (%) 3-year tenure (%) 5-year tenure (%) % Tenure SMALL FINANCE BANKS Jana Small Finance Bank 8.20 5 years 7.50 7.75 8.20 slice Small Finance Bank 9.00 18 months 1 day to 18 months 2 days 6.75 8.25 7.75 Suryoday Small Finance Bank 8.40 Above 30 months to 3 years 7.90 8.40 8.00 Unity Small Finance Bank 8.60 1001 days 7.00 8.00 8.00 Utkarsh Small Finance Bank 8.25 2 years to 3 years 6.25 8.25 7.75 What is Small Finance Bank? Particulars Commercial Bank Small Finance Bank Regulatory Requirement Regulated by the RBI Regulated by the RBI Loan Offers all types of loans Provides basic loan facilities such as personal loans, gold loans, MSME loans, vehicle loans, etc. Target Customers Not restricted to any one or any entity Small borrowers, unorganised workers, MSMEs Remittance Services Can provide remittance services Can provide remittance services Online Banking Solutions Can offer digital banking solutions Can offer digital banking solutions Capital Limit Requires enormous amounts of capital Minimum capital should be up to 100 crores After the Reserve Bank of India cut the repo rate this year by 100 basis points since February 2025, many banks have slashed their fixed deposit interest rates in tandem with repo rate cuts. However, there are only a few banks which still offer above 8% for regular citizens even after the FD rate cut. Individuals looking for a higher FD interest rate should lock their FD before even these banks slash their are the banks offering fixed deposit interest rates above 8% for general citizens on amounts below Rs 3 Small Finance Bank, earlier known as North East Small Finance Bank is offering a higher FD interest rate of 9% on FD tenure of 18 months 1 day to 18 months 2 daysUnity Small Finance Bank is offering the highest FD interest rate of 8.60% on tenure of 1001 days for general citizens. Suryoday Small Finance Bank is offering the highest FD interest rate of 8.40% on tenure above 30 months to 3 years for general citizens. Utkarsh Small Finance Bank is offering the highest FD interest rate of 8.25% on tenure of 2 Years (730 Days) up to 3 Years (1095 Days for general citizens. Jana Small Finance Bank is offering the highest FD interest rate of 8.20% on tenure of 5 Years (1825 Days) for general PaisabazaarData as on June 18, 2025Disclaimer: While deposits in small finance banks are insured by the Deposit Insurance Credit Guarantee Corporation (DICGC) up to Rs 5 lakh, experts advise investors to exercise caution when investing in their FDs. Given their unique business model, the risk associated with investing in small finance bank FDs might differ slightly from that of scheduled commercial to AU Small Finance Bank, 'A Small Finance Bank is a segment under the banking system, and every bank under this segment is regulated by the Reserve Bank of India (RBI). The banks are set up to promote the objective of financial inclusion by offering basic banking facilities to the un-served and underserved sections.'Difference between -commercial Bank & small finance bankAccording to the AU Small Finance Bank, here are few difference between commercial bank and small finance bank
Time of India
28-05-2025
- Business
- Time of India
au small finance bank: AU Small Finance Bank buys commercial tower in Mumbai's Bandra for Rs 371 cr
Cancel › › › › Text Size: A A A AU Small Finance Bank buys commercial tower in Mumbai's Bandra for Rs 371 cr Sign In Sign Up Success This article has been saved
Time of India
24-05-2025
- Business
- Time of India
FD rate up to 9.1% for senior citizens investing for 5 years; Know the list of banks
Bank FD interest rate FD rate up to 9.1% FD rate up to 8.65% Bank Name Interest rate Suryoday Small Finance Bank 9.1% Unity Small Finance Bank 8.65% NorthEast Small Finance Bank 8.5% Utkarsh Small Finance Bank 8.25% Jana Small Finance Bank 8.2% Live Events FD rate up to 8.5% FD rate up to 8.25% FD rate up to 8.2% When is TDS deducted from bank FDs? There are still some banks who continue to offer up to 9.1% interest rate on fixed deposits (FD) made by senior citizens (age 60 years and above) for five year tenure and not exceeding Rs 3 below to know the list of banks offering FD interest rate up to 9.1%Suryoday Small Finance Bank is offering 9.1% interest rate on FD of five year Small Finance Bank is offering 8.65% interest rate on FD for five year as of May 21, 2025NorthEast Small Finance Bank is offering up to 8.5% interest rate on FD for five year Small Finance Bank is offering 8.25% interest rate on FD for five year Small Finance Bank is offering 8.2% interest rate on FD for five year While deposits in small finance banks are insured by the Deposit Insurance Credit Guarantee Corporation (DICGC) up to Rs 5 lakh, experts advise investors to exercise caution when investing in their FDs. Given their unique business model, the risk associated with investing in small finance bank FDs might differ slightly from that of scheduled commercial banks. To mitigate potential risks, it's recommended that investors limit their exposure to small finance bank FDs to an amount that falls within the DICGC coverage. This ensures that their principal and interest are protected in unforeseen is required to be deducted by banks if the interest amount in an FD is above Rs 1 lakh in a particular bank. Do note that TDS is not any additional tax, you can get this tax back as a refund or adjust it with your total tax liability at the time of income tax return filing (ITR). Moreover, if you are eligible for a tax refund then you might be eligible for interest on tax instance, if a senior citizen's income is Rs 11 lakh then, it's not subject to income tax due to Section 87A tax rebate under the new tax regime for FY 2025-26. Section 87A tax rebate is available for up to Rs 12 lakh income level under the new tax the fact that no income tax is levied on such an income level (below Rs 12 lakh), banks and other financial institutions will still deduct TDS. This is because the law mandated them to deduct TDS once the interest/income amount crossed a particular threshold which was Rs 1 lakh for senior citizens. This happens because banks are not aware about tax liability and deduct TDS whenever the annual interest amount crosses Rs 1 lakh. So, can such a senior citizen file form 15H to avoid TDS on fixed deposits in such situations.
Time of India
26-04-2025
- Business
- Time of India
Up to 9.1% interest rate on FDs in these banks for senior citizens on 3-year investment tenure, check the full list here
FD interest rate up to 9.1% for senior citizens FD interest rate up to 9% for senior citizens Bank name Interest rate Utkarsh Small Finance Bank 9.1% NorthEast Small Finance Bank 9% Jana Small Finance Bank 8.75% Suryoday Small Finance Bank 8.75% Unity Small Finance Bank 8.65% Equitas Small Finance Bank 8.25% Live Events FD interest rate up to 8.75% for senior citizens FD interest rate up to 8.65% for senior citizens FD interest rate up to 8.25% for senior citizens Can senior citizens submit Form 15H to prevent TDS deduction from FDs While overall interest rate has started coming down, but there are still some banks who are offering a high interest rate on fixed deposits (FDs) for senior citizens up to 9.1% for three year tenure. Considering the fact that the Reserve Bank of India (RBI) has cut repo rates and already many banks have reduced their FD and savings account interest rates, now seems like a good time to invest in FDs for a medium time duration like three years. Do note that these interest rates are for FDs worth less than Rs 3 below to know the latest FD interest rates for senior citizensUtkarsh Small Finance Bank is offering up to 9.1% interest rate on FDs for three year tenure for senior Small Finance Bank is offering up to 9% interest rate on FDs for three year tenure for senior as of April 23, 2025Jana Small Finance Bank and Suryoday Small Finance Bank are both offering up to 8.75% interest rate on FDs for three year tenure for senior Small Finance Bank is offering up to 8.65% interest rate on FDs for three year tenure for senior Small Finance Bank is offering up to 8.25% interest rate on FDs for three year tenure for senior While deposits in small finance banks are insured by the Deposit Insurance Credit Guarantee Corporation (DICGC) up to Rs 5 lakh, experts advise investors to exercise caution when investing in their FDs. Given their unique business model, the risk associated with investing in small finance bank FDs might differ slightly from that of scheduled commercial banks. To mitigate potential risks, it's recommended that investors limit their exposure to small finance bank FDs to an amount that falls within the DICGC coverage. This ensures that their principal and interest are protected in unforeseen Budget 2025 it was announced that TDS on FD would be deducted once the interest amount crosses Rs 1 lakh in a particular bank. Form 15H is a self-declaration form that senior citizens (60 years & above) can submit to avoid TDS on income, provided their total net tax liability is zero. Do note that the TDS deducted by banks can very well be claimed at the time of ITR filing, so it's not like any extra tax, but it's like an additional tax compliance process to Pradyumn Narang, Partner, CNK, says: "The key condition is that the tax liability on the total income should be nil after considering deductions and rebates. It is not solely based on the basic exemption limit or post-Section 87A rebate thresholds. Instead, if after all deductions (like under Chapter VI-A) and rebates, the tax payable is zero, Form 15H can be submitted."Narang explains that this means, "A senior citizen can submit Form 15H even if the gross total income exceeds Rs 3 lakh, provided that after claiming eligible deductions (such as under Sections 80C, 80D, etc.), the taxable income falls below the basic exemption limit (Rs 3 lakh for senior citizens under the old regime or Rs 4 lakh under new regime) and results in zero income tax liability. The form is valid as long as the final tax payable is nil."
