Fixed Deposits With Good Returns Up To 7.5% For Non-Senior Citizens

Fixed deposits are a stable investment strategy that promises stable interest rates, higher interest rates for seniors, varying methods for paying interest with tax-deduction benefits. Before opening a new fixed deposit or revitalizing an existing one, it is necessary to consider the latest fixed deposit rates provided by the leading commercial banks, NBFCs, small finance banks, post office, and corporates. Some Small Finance Banks are providing higher interest rates on term deposits to general customers and senior citizens over specified maturities as of now. We have discussed here the top 4 small finance banks, which are currently providing non-senior citizens with good returns up to 7.5% respectively.

Jana Small Finance Bank

Jana Small Finance Bank offers 2.5 per cent to 7.25 per cent interest on FDs ranging from 7 days to 10 years whereas senior citizens are treated with an additional 50 basis points. For senior citizens, these deposits will have interest rates ranging from 3 per cent to 7.75 per cent. The bank offers the maximum interest rate on deposits, with a maturity period of 3 years or less than 5 years. These deposits will grant general customers and senior citizens with an interest rate of 7.25 per cent and 7.75 per cent, respectively. On deposits maturing in 1 year to 3 years, and over 5 years, the bank provides an interest rate of 7%.

Tenure	ROI in %
7-14 days	2.5
15-60 days	3
61-90 days	3.75
91-180 days	4.5
181-364 days	6
1 Year (365 Days)	6.75
> 1 Year - 2 Years	7
>2 Years-3 Years	7
> 3 Year- < 5 Years	7.25
5 Years (1825 Days)	7
> 5 Years - 10 Years	6.5

North East Small Finance Bank

North East Small Finance Bank offers interest rates ranging from 3 per cent to 7.5 per cent on FDs maturing in 7 days to 10 years. On deposits maturing in 730 days to less than 1095 days, the bank provides the highest interest rate of 7.5 per cent to general customers and 8 per cent to senior citizens. Whereas on FDs maturing in 365 days to 729 days North East Small Finance Bank provides an interest rate of 7% respectively.

Tenure	ROI in %
7 to 14 days	3
15 to 29 days	3
30 to 45 days	3.25
46 to 90 days	4
91 to 180 days	4.5
181 to 364 days	5.25
365 to 729 days	7
730 days to less than 1095 days	7.5
1096 days to less than 1825 days	6.5
1826 days to less than 3650 days	6.25

Suryoday Small Finance Bank

Suryoday Bank's FD rates vary from 4 per cent to 7.50 per cent for non-senior citizens. On deposits maturing in 5 years, the bank offers the best interest rate i.e. 7.50 per cent. The interest rates vary from 4.5 per cent to 8 per cent on deposits for senior citizens. On deposits maturing in 5 years, the bank offers the best interest rate i.e. 8% respectively.

Tenure	ROI in %
7 days to 14 days	4
15 days to 45 days	4
46 days to 90 days	5
91 days to 6 months	5.5
Above 6 months to 9 months	6.25
Above 9 months to less than 1 year	6.5
1 year to 2 years	6.75
Above 2 years to 3 years	7.15
Above 3 years to less than 5 years	7.25
5 years	7.5
Above 5 years to 10 years	7

Utkarsh Small Finance Bank

The Utkarsh Small Finance Bank provides 3 per cent to 7 per cent interest rates to the non-senior citizens and 3.50 per cent to 7.50 per cent to senior citizens on FDs maturing between 7 days to 10 years. With a maturity period of 700 days, the bank offers the best interest rate on deposits i.e. 7.5 per cent interest for elderly people and 7 per cent for the general public respectively.

Tenure	ROI in %
7 Days to 45 Days	3
46 Days to 90 Days	3.25
91 Days to 180 Days	4
181 Days to 364 Days	6
365 Days to 699 Days	6.75
700 Day	7
701 Days to 3652 Days	6.75

Taxation

In the case of non-senior citizens, no TD is deducted if the interest earned from FDs of banks is less than Rs 40,000 per annum. In the case of a senior citizen aged 60 years and over, the cap is Rs 50,000. The cap of TDS on interest income was Rs. 10,000 prior to Budget 2019. If the interest revenue crosses Rs 40,000 and Rs 50,000 for senior citizens, there will be a 10 per cent TDS deduction. The TDS cap is 20% in case you do not support the bank with your PAN specifics. When the overall income is lower than the standard taxable amount, no TDS is withheld by the bank. In order to avoid TDS you need to submit Form 15G or 15H at your bank.

Note: On Budget 21-22 it has been introduced that senior citizens having their only source of annual income is pension income and interest income are no more mandated to file IT returns. In order to compel banks to deduct tax against senior citizens above 75 years of age who have a pension and interest income from the bank, Section 194P was newly introduced.