Senior Citizens Get Up to 7.75% Interest on 10-Year FDs

Quick Summary

• Senior citizens can get up to 7.75% interest on fixed deposits (FDs) for a ten-year tenure at banks like Axis Bank, DCB Bank, and YES Bank.
• HDFC bank, indusind Bank, and RBL Bank offer a 7.5% interest rate on similar FDs.
• ICICI Bank provides a 7.4% interest rate for senior citizens’ ten-year FDs.
• From April 1, 2025, the threshold for Tax Deducted at Source (TDS) on FDs has been raised to Rs 1 lakh annually for senior citizens.
• Proper financial planning can help senior citizens manage TDS by keeping interest earnings below the rs 1 lakh threshold.

Indian Opinion Analysis

The increase in FD rates presents an attractive possibility for senior citizens looking to secure stable long-term returns amidst fluctuating market conditions. With banks like Axis and YES offering competitive rates of up to 7.75%, there is significant encouragement for seniors to lock in these rates before potential reductions prompted by changes in the Reserve Bank of India’s policy.

Additionally, the revised TDS rule simplifies tax liability management for seniors with moderate investments. By strategically investing so that annual earnings don’t exceed Rs 1 lakh per bank, investors can avoid immediate tax deductions despite earning ample passive income through such schemes.

As banks adjust their policies according to monetary decisions from governing bodies like the RBI and fiscal amendments introduced in budgets, it’s essential that investors remain informed and make timely decisions about where they allocate their savings.

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