Some banks are still using rate of interest as high as 8.15% on repaired deposits (FDs) for elderly people (aged 60 years and above) for a 3- year term, with a cap of Rs 3 crore.
Have a look at the list listed below to discover which banks provide FD rates of interest as much as 8.15% for elderly people.
Bank FD rate of interest for elderly people
FD rate as much as 8.15%
Utkarsh Small Finance Bank offers an 8.15% rate of interest on repaired deposits with a three-year period for elderly people.
FD rates approximately 8% for seniors
Jana Small Finance Bank is using 8% rates of interest on FD with three-year term for elderly people.
Source: Paisabazaar.com since October 8, 2025
FD rates approximately 7.7%
Ujjivan Small Finance Bank is providing to 7.7% rates of interest on FD for a three-year period.
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Disclaimer: While deposits in little financing banks are guaranteed by the Deposit Insurance Credit Guarantee Corporation (DICGC) approximately Rs 5 lakh, specialists recommend financiers to work out care when buying their FDs. Provided their distinct service design, the danger related to buying little financing bank FDs may vary a little from that of set up business banks. To alleviate prospective threats, it’s suggested that financiers restrict their direct exposure to little financing bank FDs to a quantity that falls within the DICGC protection. This makes sure that their principal and interest are safeguarded in unexpected scenarios.
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When is TDS deducted from bank FDs?
Banks are needed to subtract tax deducted at source (TDS) if the yearly interest from a repaired deposit (FD) goes beyond Rs 1 lakh in a specific bank. Keep in mind, TDS isn’t an extra tax; you can get it back as refund or offset it versus your overall tax liability when you submit your tax return (ITR). Plus, if you are qualified for a tax refund, you may likewise be qualified for interest on that refund.
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If a senior person has an earnings of Rs 11 lakh, they will not have to pay earnings tax thanks to the Section 87A tax refund under the brand-new tax routine for FY 2025-26. The Section 87A tax refund uses to approximately Rs 12 lakh earnings under the brand-new tax routine for FY 2025-26.
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A senior resident can send Form 15H to prevent TDS reduction, if their overall earnings, after declaring all tax reductions and the Section 87A refund, is listed below the taxable limitation, which is Rs 12 lakh for the brand-new tax program or Rs 5 lakh for the old tax routine.
Although no earnings tax is charged on yearly earnings listed below Rs 12 lakh, banks and other banks will still subtract TDS. This is since the law needs them to subtract TDS once the interest/income quantity goes beyond a particular limitation, which is Rs 1 lakh for elderly people. Banks are not knowledgeable about specific tax liabilities and will subtract TDS whenever the yearly interest goes beyond Rs 1 lakh. Send Form 15H to let the banks understand.
