Fixed deposits (FDs) continue to be one of the safest and most trusted investment options, especially for senior citizens.
Many banks are currently offering attractive interest rates, with some even crossing the 8% mark.
If you’re planning to invest in an FD, here’s a look at the banks offering the highest returns.
Banks Offering Up to 8% Interest
Suryoday Small Finance Bank is currently offering the highest return, with 8.05% interest on 5-year fixed deposits for senior citizens. Jana Small Finance Bank is also providing a strong 8% interest on eligible FDs.
Other small finance banks are offering competitive rates as well. AU Small Finance Bank and Slice Small Finance Bank offer 7.25%, while Equitas Small Finance Bank provides 7.50% interest.
Shivalik Small Finance Bank offers 6.75% on 5-year FDs. These rates are applicable for fixed deposits of less than ₹3 crore.
Interest Rates at Major Banks
Among leading public and private banks, State Bank of India (SBI) is offering up to 7.05% interest for senior citizens. ICICI Bank provides 7.10% on 5-year fixed deposits.
Axis Bank offers 7.25%, while HDFC Bank is giving up to 6.90% on FDs with a tenure of 4 years, 7 months, and 1 day. Punjab National Bank (PNB) is offering 6.85% interest on 5-year fixed deposits.
When Does TDS Apply on FDs?
Banks deduct TDS if the interest earned on your fixed deposit exceeds ₹1 lakh in a financial year.
However, if you are eligible, you can claim the deducted TDS while filing your Income Tax Return (ITR). The refund will be issued only if it is applicable under tax rules.
