Top 5 banks offering the highest interest rate on senior term deposits

Top 5 Senior Citizen Bank Fds for 1 year of service

For a one-year term, Fd seniors can earn a maximum of 6.5% per annum interest compounded quarterly. Again, Yes Bank, IndusInd Bank and RBL Bank top the rankings.

Top 5 Senior Citizen Bank Fds for a 2-year term

The highest rate again for said tenure is a maximum of 6.5 percent per annum provided by the banks listed in the table.

Top 5 Senior Citizen Bank Fds for 3 years of service

Here, Yes Bank offers the highest interest rate of 7% per annum, followed by RBL Bank and IndusInd Bank which offer 6.8% and 6.5% interest per annum respectively for a three-year DF.

Top 5 Senior Citizen Bank Fds for 5 years of service

Here again, Yes Bank tops the rankings and offers the highest interest rate of 7 percent per annum for 5 years FD with the bank. Indeed the bank for a FD maintained with the bank for 3 years at less or equal to 10 years offers the same rate.

Conclusion:

So, in conclusion, we can see that Yes Bank offers the highest FD rate on a term of between 3 and 10 years of 7 per year. While other banks such as the private sector HDFC Bank have also raised their interest rates, the new revised rates are still lower and not in the top 5 FDs for seniors.

In addition to these Fds which offer a maximum of 7% for an occupation period of between 3 and 10 years, the elderly can also consider other investments, such as the program for the elderly of the post office which offers a rate of 7.4% interest, the MIS which is an investment over 5 years. plan with monthly yields at 6.6 percent interest.

Important points for seniors with FD investments

Seniors in order to avoid TDS on FD interest income must file Form 15H at the start of each fiscal year with banks. If they don’t, they can only claim the refund when they file their tax return.

FD interest is fully taxable for individual appraisals, however seniors are entitled to a refund and can claim a deduction of up to Rs. 50,000 against interest earned on savings and FD income during a exercise. But this must necessarily be indicated in the ITR under the heading “income from other sources” and the deduction by the elderly can be claimed under section 80TTB by the elderly.

In the event that accrued interest is greater than Rs. 50,000 for the elderly per year, then banks are required to deduct TDS at the rate of 10%. This TDS deduction will then be indicated in 26 AS.

Although Indian banks have always been bailed out in times of crisis as we saw in the latest Yes Bank case and there is this DICGC which insures all deposits including savings, fixed, current deposits , recurring, etc., you can split your FD investment into maybe 2 or 3 banks instead of maintaining a large corpus with just one bank.

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