The most reliable investment for the elderly Even today, amidst rising inflation and stock market fluctuations, Fixed Deposit (FD) remains the safest and most reliable way of investment for senior citizens. The great news for the elderly is that some small finance banks are now offering great interest of up to 8.05% on 5 year FD. These attractive rates are especially available for investors aged 60 years and above, who want better returns on their retirement funds.
These banks are giving highest profits At present, Suryoday Small Finance Bank is at the forefront in the race of interest rates, which is offering 8.05% interest on 5 year deposits to senior citizens. After this, Jana Small Finance Bank is offering interest up to 7.77% and Ujjivan Small Finance Bank is offering interest up to 7.70%. At the same time, Equitas and Utkarsh Small Finance Bank are also not lagging behind and are giving returns up to 7.50%. If seen, these small banks are paying more interest to attract customers as compared to big government or private banks.
Why are we getting such high returns? Saurabh Jain, co-founder of ‘Stable Money’, says that these small finance banks are offering such attractive rates to strengthen their retail deposit base. Banks like Utkarsh, Suryoday and Shivalik have kept their rates stable for a long time, which has increased their confidence among investors. This is why senior citizens are now turning to these options instead of traditional big banks.
Take special care of security also Market experts advise that one should not invest money only after seeing high interest rates. It is important to prioritize security while investing in small banks. However, the good thing is that every bank’s FD gets an insurance cover of up to Rs 5 lakh from DICGC (Deposit Insurance and Credit Guarantee Corporation). The best way to be safe is to keep your total investment in a bank within the limit of Rs 5 lakh, to avoid any risk in future.
Do not ignore TDS rules If your annual income from FD in any bank is more than Rs 1 lakh, then the bank deducts TDS on it. But according to the new tax regime for the financial year 2025-26, now tax will not have to be paid on annual income up to Rs 12 lakh. In such a situation, in Senior Citizen Bank Form 15H You can save your TDS from being deducted by depositing it. Understanding these rules before investing your hard-earned money in the right place will prove to be a profitable deal.
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