Senior citizens can earn up to 8.75% interest rate on one-year fixed deposits (FDs) from some small finance banks, according to a report by ET Wealth Online. The interest rate applies to deposits of less than Rs 3 crore. The report highlights the highest interest rates offered by small finance banks for FDs maturing in one year, with Jana Small Finance Bank, Ujjivan Small Finance Bank, and Equitas Small Finance Bank offering 8.75%, 8.6%, and 8.6% interest rates, respectively. Utkarsh Small Finance Bank and Suryoday Small Finance Bank offer 8.6% and 8.55% interest rates, respectively, while Unity Small Finance Bank offers 8.35%. The report cautions that investors should exercise caution when investing in small finance bank FDs, as they are not insured by the Deposit Insurance and Credit Guarantee Corporation (DICGC) for amounts above Rs 5 lakh. Seniors can claim a tax deduction of up to Rs 50,000 under section 80TTB for interest income from FDs.

Source: https://economictimes.indiatimes.com/wealth/invest/best-fd-rate-senior-citizens-can-get-up-to-8-75-interest-on-fixed-deposits-maturing-in-a-year-get-the-full-list/articleshow/115116051.cms?from=mdr