Banking: FD of 2 to 3 years will make you rich, these banks are giving the highest interest..

FD rate up to 8.50% for senior citizens) Good news for senior citizens. If you want great returns with a safe investment, some banks are offering attractive interest rates of up to 8.50 percent on fixed deposits (FD). This is a great opportunity to earn good profits while keeping your money safe.

Some depositors are hesitant about insurance protection while investing in fixed deposits (FD). As per the current rules, deposits in small finance banks are insured up to ₹5 lakh under the Deposit Insurance and Credit Guarantee Corporation (DICGC), a subsidiary of the RBI. This protection is similar to the protection available in private and public sector banks.

Highest Bank FD Interest Rates for Senior Citizens-

Utkarsh Small Finance Bank: This bank is offering an 8.25% interest rate on FDs ranging from 2 years (730 days) to 3 years (1095 days).

Jana Small Finance Bank: This bank is offering up to 8.25% interest rate on FDs for tenures ranging from 1 year to 3 years.

Unity Small Finance Bank: This bank is offering up to 8.25% interest rate on FD tenures of 1001 days.

Slice Small Finance Bank: This bank is offering up to 8.50% interest rate on FDs for tenures ranging from 18 months 1 day to 18 months 2 days for senior citizens.

Are small finance banks covered under DICGC?

Many depositors hesitate to invest in FDs, thinking their deposits are not safe. But that's not the case! As per the current rules, deposits up to ₹5 lakh in small finance banks are insured under the Deposit Insurance and Credit Guarantee Corporation (DICGC), a subsidiary of the RBI. This rule applies equally to private and public sector banks, so your FD is safe up to ₹5 lakh.

How safe are small finance banks for FD investments?

According to the website of AU Small Finance Bank, the RBI regulates and monitors SFBs like all banks in India. All banking regulations, such as the statutory liquidity ratio (SLR) and cash reserve ratio (CRR), apply to them as well. Additionally, the RBI also sets guidelines such as eligibility criteria and mandatory promoter contribution for SFBs, to ensure their stability and proper operation.

Current TDS rules on FD investments-

From April 1, 2025, TDS rules on FDs for senior citizens have changed. Now, TDS will be deducted only if their interest income exceeds ₹1 lakh in a financial year. For general citizens, this limit remains the same as before at ₹50,000. With this change, senior citizens will get more exemptions on their FD interest.

Disclaimer: This content has been sourced and edited from Hr Breaking. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.