October 11, 2025

Senior citizens, get ready to boost your savings! You can now invest in fixed deposits (FDs) and enjoy juicy interest rates up to 8.15% for a three-year term. Leading the pack is Utkarsh Small Finance Bank, which offers a whopping 8.15% interest rate for senior citizens aged 60 and above, with an investment cap of Rs 3 crore. But that’s not all! Jana Small Finance Bank is not far behind, offering a solid 8% interest rate on three-year FDs for seniors. Ujjivan Small Finance Bank also joins the race with an attractive rate of 7.7% for the same tenure. Check the list: - Utkarsh Small Finance Bank: 8.15% - Jana Small Finance Bank: 8% - Ujjivan Small Finance Bank: 7.7% (Source: Paisabazaar.com as of October 8, 2025) While these rates are mouth-watering, a word of caution: FDs in small finance banks are insured by the Deposit Insurance Credit Guarantee Corporation (DICGC) only up to Rs 5 lakh. Experts suggest you keep your FD investments within this limit to protect your principal and interest in case of unlikely events. Now, let’s talk taxes! Banks deduct Tax Deducted at Source (TDS) on FD interest if the yearly interest exceeds Rs 1 lakh. Remember, TDS is not extra tax; you can claim it back when filing your Income Tax Return (ITR). Plus, if you qualify for a refund, you might even get interest on that refund. For example, a senior citizen earning Rs 11 lakh won’t pay any tax thanks to Section 87A rebate under the new tax regime for FY 2025-26. The rebate covers incomes up to Rs 12 lakh. Wondering how to avoid TDS? Submit Form 15H! This handy form tells banks you are exempt from TDS if your total income after deductions and rebate is below the taxable limit—Rs 12 lakh for new tax regime or Rs 5 lakh old regime. But why does TDS get deducted even if no tax is due? Banks deduct TDS whenever FD interest crosses Rs 1 lakh because they don’t know your whole income picture. That’s why Form 15H is your best friend to stop unnecessary deductions. So, senior citizens, don’t miss this chance to earn handsome interest. Pick your bank, invest wisely, and remember to submit Form 15H to save on TDS hassles. Happy investing!

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Tags: Senior citizens, Fixed deposit, Interest rates, Small finance banks, Tds, Form 15h,