Utkarsh, Jana Small Finance Offer Up to 9.1% Interest on 5-Year Fixed Deposits

Senior citizens investing in fixed deposits for 5 years can earn up to 9.1% interest. Various banks like Suryoday and Unity Small Finance Bank are offering competitive rates. Learn more about FD tax benefits and available options.

Best FD Interest Rates for Senior Citizens

Senior citizens can earn up to 9.1% interest on fixed deposits (FDs) for a tenure of five years. Several banks are offering high rates on FDs for investments of less than ₹3 crore. Below is a list of banks offering the best interest rates.

Suryoday Small Finance Bank stands out, offering an attractive 9.1% interest rate on FDs maturing in five years. Unity Small Finance Bank provides a solid 8.65% on similar FDs.

NorthEast Small Finance Bank is offering 8.5% interest on FDs, while Utkarsh Small Finance Bank provides a slightly lower 8.35% rate. Lastly, Jana Small Finance Bank offers an 8.2% interest rate for senior citizens.

It’s important to note that some banks have started reducing their interest rates after the RBI’s repo rate reduction by 25 basis points on February 7, 2025.

Tax Benefits

Investing in five-year FDs is beneficial for senior citizens who file taxes under the old tax regime. These FDs are eligible for tax deductions under Section 80C, allowing a deduction of up to ₹1.5 lakh.

Additionally, senior citizens can claim a deduction of up to ₹50,000 annually under Section 80TTB on interest earned from tax-saving FDs.

It’s essential for senior citizens to carefully evaluate whether the tax-saving option under the old tax regime aligns with their financial situation before making an investment decision.

However, it’s worth mentioning that while senior citizens can avail of tax deductions, the interest earned on FDs will still be taxable based on their applicable tax slab, with certain exemptions available for senior citizens.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.