Senior citizens investing in fixed deposits can now secure interest rates up to 8.

Senior citizens investing in fixed deposits can now secure interest rates up to 8.05 percent for five-year terms through select small finance banks. Suryoday Small Finance Bank leads the offerings with the highest rate, while Jana Small Finance Bank provides 7.77 percent and Ujjivan Small Finance Bank offers 7.70 percent. These rates represent a significant opportunity for enhanced returns on savings compared to traditional options. Tax deducted at source applies when FD interest exceeds one lakh rupees annually, but eligible senior citizens can submit Form 15H to avoid TDS deductions. Importantly, deposits in small finance banks are insured by the Deposit Insurance Credit Guarantee Corporation up to five lakh rupees, though experts recommend limiting exposure to this coverage amount given the different risk profile compared to scheduled commercial banks.