Amidst the ongoing fluctuations in the stock market, Fixed Deposit (FD) has once again emerged as the most preferred option for senior citizens looking for safe investment. Senior citizens who give priority to security of their capital and regular income after retirement in 2026 are getting excellent returns on FD. Senior citizens usually get 0.50% (50 basis points) more interest than general customers. These rates of interest depend on the policy of RBI, the period of investment and the cash position of the banks. Interest rates in government and private banks Interest rates on FD in government banks Interest rates on FD in private banks Small finance banks are giving the highest returns Small finance banks (SFBs) are at the forefront in terms of returns, where interest is up to 8.5%. ESAF Small Finance Bank is offering 8.50% interest on FD of 501 days. Apart from this, Suryoday, Shivalik, Equitas and Jana Small Finance Bank are also offering interest ranging from 8.00% to 8.30% for different tenures. However, the risk in these is considered slightly higher than that of big commercial banks. Interest rates on FD in small finance banks These 4 benefits the elderly get from FD After retirement, the elderly choose FD for many reasons: Investment strategy and tax rules According to experts, instead of investing all the money in one FD, it should be divided into short, medium and long term and invested. Senior Citizen Savings Scheme (SCSS) or PPF can also be included with FD for better profits. Talking about tax, the income from FD is taxable as per the tax slab of the investor. Banks deduct TDS on this, but if the annual income is less than the tax limit, then the elderly can save TDS by submitting Form 15H. What is Form 15H and laddering? Form 15H: This is a self-declaration form that people above 60 years of age submit to the bank, so that TDS is not deducted on their interest income. This can be filled only if the tax on your total estimated income is zero. FD Laddering: Instead of making one big FD, dividing your total amount into small FDs for different periods of time (like 1 year, 2 years, 3 years) is called laddering. This gives the benefit of change in interest rates and there is no shortage of money in emergency.
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Now FD has become even more beneficial for senior citizens: Small finance banks are giving the highest returns; Before investing, know special things related to it
