Top FD Schemes for Senior Citizens in August 2024

Synopsis: Fixed deposits (FDs) offer senior citizens a safe investment with attractive returns. In August 2024, several small finance banks provide FDs with interest rates up to 9.5% per annum. This article highlights the top FD schemes, tax benefits, and compares them with the Senior Citizens Savings Scheme (SCSS).

Fixed Deposits: A Secure Choice

For senior citizens, fixed deposits (FDs) are a popular investment option due to their stability and predictable returns. As retirees seek to protect their savings from market volatility, FDs offer a reliable income stream, making them a preferred choice.

Top FD Schemes in August 2024

1. Here are some of the best FD options available:
2. North East Small Finance Bank: 9.5% per annum (Three years)
3. Suryoday Small Finance Bank: 9.1% per annum (Three years)
4. Utkarsh Small Finance Bank: 9.1% per annum (Three years)
5. Jana Small Finance Bank: 8.75% per annum (Three years)
6. Unity Small Finance Bank: 8.65% per annum (Three years)

Tax Benefits

Senior citizens can claim a deduction of up to Rs 50,000 on interest income under Section 80TTB of the Income Tax Act. Additionally, no TDS will be deducted on interest income up to Rs 50,000 in a financial year, and Form-15H can be submitted to avoid TDS deductions.

FDs vs SCSS

The Senior Citizens Savings Scheme (SCSS) offers an interest rate of 8.2% per annum with a five-year lock-in period. It also provides tax benefits under Section 80C, making it a government-backed alternative to FDs.