For senior citizens (60+ years old), here’s good news: several small finance banks are offering high-yield fixed deposit schemes with interest rates of up to 8.75% per annum for a 5-year tenure. The interest rates mentioned in the article are applicable for FDs of less than ₹3 crore. Some of the best rates offered by these small finance banks are:
* Suryoday Small Finance Bank: 8.75%
* Unity Small Finance Bank: 8.65%
* Utkarsh Small Finance Bank: 8.35%
* AU Small Finance Bank, Equitas Small Finance Bank, and Jana Small Finance Bank: 7.75%
* Ujjivan Small Finance Bank: 7.7%
Senior citizens can claim a deduction of up to ₹50,000 under Section 80TTB for interest income from bank FDs, as well as other sources. This limit applies to the total interest income from deposits held in banks, post offices, and cooperative societies. Please note that Times of India is not responsible for any losses incurred from personal financial investments.