Indian banks offer varying fixed deposit rates for senior citizens

Various Indian banks are offering competitive fixed deposit (FD) interest rates for senior citizens aged 60 and above. Suryoday Small Finance Bank currently provides the highest rate among listed institutions at 8.05% for 5-year FDs on deposits up to Rs 3 crore. Jana Small Finance Bank follows closely with an 8% rate for the same tenure.

Other small finance banks offering rates for senior citizens include AU Small Finance Bank at 7.25%, Equitas Small Finance Bank at 7.50%, and Ujjivan Small Finance Bank at 7.70%. For senior citizens, banks are required to deduct Tax Deducted at Source (TDS) if interest earned exceeds Rs 1 lakh in a financial year.

UCO Bank, a public sector bank, offers a special 444-day FD scheme with interest rates ranging from 6.45% to 6.95%. Senior citizens receive a 0.50% higher rate than regular customers on accounts with tenures exceeding one year. UCO Bank also provides preferential rates for its retired senior citizen staff, offering up to 1.50% higher interest on certain accounts.