Senior citizens can now secure fixed deposit rates up to 8 percent for three-year investments through select small finance banks.

Senior citizens can now secure fixed deposit rates up to 8 percent for three-year investments through select small finance banks. Utkarsh and Jana Small Finance Banks are leading the charge with competitive 8% offerings, capped at Rs 3 crore per depositor. Other institutions like Ujjivan provide 7.7% while AU and Equitas offer 7.6% and 7.5% respectively. These rates represent attractive returns in the current economic environment for retirees seeking stable income. Investors should note that TDS applies when interest exceeds Rs 1 lakh annually at a single bank, though eligible seniors can file Form 15H to avoid deductions. Importantly, deposits remain insured by DICGC up to Rs 5 lakh, though experts recommend limiting small finance bank exposure to this coverage threshold given their distinct business models compared to scheduled commercial banks.