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Home >Money >Personal Finance >Senior citizens tax-saving FDs above 7%. Check details here

Tax-saving fixed deposits (FDs) are among the savings options that offer income tax benefits under Section 80C. The maturity period of a tax-saver FD is 5 years. Senior citizens often depend on banks FDs for a regular income. Amid this falling interest rates, they can park their savings for atenure of five years or more and earn returns of more than 7 per cent, plus they can claim deduction up to 1.5 lakh by investing in these tax-saving FDs. Tax-saving FDs are considered to be less risky as compared to equities.

Tax-saving FDs interest rate

Currently, the average interest rate on 5-year tax saving FD in most leading banks is in the range of 5.3% to 5.5% for general customers. Senior citizens get an additional interest rate of 50 basis points (bps) over and above the others.

Tax-saving FDs interest rate for senior citizens

IDFC First Bank tax-saving FD will give 7.25% to senior citizens

Yes Bank tax-saving FD will also give 7.25% to senior citizens

IndusInd Bank tax-saving FD will also give 7.25% to senior citizens

RBL Bank tax-saving FD will also give 7.25% to senior citizens

AU Small Finance Bank tax-saving FD will give 7.00% to senior citizens

Investments in fixed deposits of up to 5 lakh are guaranteed by the Deposit Insurance and Credit Guarantee Corporation (DICGC), a wholly owned subsidiary of the Reserve Bank of India. The enhanced limit came into effect from 4th February. Under this scheme, in case of an unlikely bank failure deposits up to 5 lakh is insured and paid back to the depositor. All types of bank deposits including savings, fixed and recurring, are covered under the scheme.

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