Fixed deposits are popular among senior citizens, as they benefit them the most with high interest rates and higher limits for TDS. And now, there’s a good chance for those senior citizens who have been looking to invest in high interest FDs as multiple banks have increased their interest rates for FDs.
Here are some public and private sector banks which are offering over 8% interest rates for FDs up to Rs 2 crore.
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DCB Bank:
This private sector bank is offering an interest rate of 8.6% for fixed deposits maturing between 25 months and 26 months.
IDFC First Bank:
For senior citizens, the bank is offering an interest rate of 8.5% on FDs maturing in 500 days.
Bandhan Bank:
Bandhan Bank is offering an interest rate of up to 8.35% on FDs maturing in one year for senior citizens.
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IndusInd Bank:
IndusInd Bank offers an interest rate of 8.25% for senior citizens fixed deposits maturing between one year and two years.
YES Bank:
YES Bank is also offering a high interest rate of 8.25% on FDs maturing between 18 months and less than two years for senior citizens.
DBS Bank India:
For senior citizens, DBS Bank India offers interest rate of 8% on FDs maturing between 376 days and 540 days.
Karur Vysya Bank
Similar to DBS Bank India, Karur Vysya Bank offers an interest rate of 8% on FDs maturing in 444 days.
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Tamilnad Mercantile Bank (TMB)
This bank also offers an interest rate of 8% on FDs maturing in 400 days.
How to avoid TDS on FDs?
While it is mandatory for the banks to deduct TDS on fixed deposits, senior citizens can avoid TDS. Generally, banks in India deduct TDS when the interest amount surpasses Rs 50,000 in a financial year, whatever tax regime you choose.
However, if a senior citizen predicts that their net taxable income will remain below the basic exemption limit, they can avoid TDS by submitting Form 15H to their bank.
