Fixed Deposit: If you are 60 years of age or above and want to make an FD of less than Rs 3 crore, then these private banks are offering interest rates up to 7.75% for 10 years.
FD Interest Rate: This is a great opportunity for those who want to get good returns while keeping their money safe to do FD. Some banks are offering interest rates up to 7.75% on 10-year fixed deposits (FD). However, this scheme is only for senior citizens. Not only this, an important change related to TDS on FD has also been made in the budget of the year 2025, which will provide more relief to senior citizens.
Which banks are offering interest up to 7.75%?
If you are 60 years of age or above and want to make an FD of less than Rs 3 crore, then these private banks are offering interest rates up to 7.75% for 10 years.
1. Banks offering 7.75% interest rate – Axis Bank, DCB Bank and YES Bank.
2. Banks offering 7.5% interest rate – HDFC Bank, IndusInd Bank and RBL Bank
3. Bank offering 7.4% interest rate: – ICICI Bank. ICICI Bank is the only bank that is offering 7.4% interest on 10-year FD.
New TDS rule for senior citizens
From April 1, 2025, if the total interest income on FD of a senior citizen is less than ₹ 1 lakh, then no TDS will be deducted on it. That is, if the interest received from your FD in a bank is not more than ₹ 1 lakh, then the bank will not deduct TDS.
How can you save TDS?
If you plan your FD amount and interest rate properly, you can ensure that your annual interest income is less than ₹ 1 lakh and TDS is not deducted. If your interest income exceeds ₹ 1 lakh, you can avoid TDS deduction by submitting Form 15H, provided your total annual income is less than the tax exemption limit.
What happens if TDS is deducted?
TDS is not an extra tax. If your total tax liability is less than TDS, then after filing Income Tax Return (ITR), you can get this money back, along with interest on it.
