Fd interest rate: Despite a significant decline in the repo rate, there are still many banks, which are offering high interest rates of up to 8.25% on fixed deposits (FDs). These rates are for a period of one year for senior citizens. Senior Citizens who have passive money kept with them can earn a lot of returns from this FD in a short period. Also, from April 1, 2025, senior citizens can enjoy the high limit of TDS deduction on FD interest. Low banks are offering good interest rates on one year FD:
Interest rate up to 8.25%
Bandhan Bank is offering an interest rate of up to 8.25% on one year FD for senior citizens.
Interest rate up to 8%
IndusInd Bank is offering an interest rate of up to 8% on one year FD for senior citizens.
Interest rate up to 8%
RBL Bank is offering an interest rate of up to 8% on FD of one year period for senior citizens.
Interest rate up to 7.75%
Tamil Nadu Mercantile Bank is offering an interest rate of up to 7.75% on FDs of one year period for senior citizens.
High TDS limit will benefit
While presenting Budget 2025, the Finance Minister had said that TDS rates would be rationalized, which will provide great relief to taxpayers. The limit of tax deduction (TDS) at source on interest for senior citizens has been doubled from Rs 50,000 to Rs 1 lakh. This means that if your interest amount in a bank’s FD is less than Rs 1 lakh, then the concerned bank will not deduct any TDS. Apart from this, even though the interest amount is more than Rs 1 lakh, but after all the deductions your total income is less than Rs 12 lakh, then you can submit Form 15H. By doing this, the bank will not deduct TDS even if the interest is more than Rs 1 lakh for the financial year 2025-26.
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