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Time of India

FD rate up to 7.85% for senior citizens investing for three years; Know the list of banks

Bank FD interest rate for senior citizens FD rate up to 7.85% FD rate up to 7.8% FD rate up to 7.75% for senior citizens Bank name Interest rate YES Bank 7.85% SBM Bank 7.8% Bandhan Bank 7.75% RBL Bank 7.6% IndusInd Bank 7.5% FD rate up to 7.6% for senior citizens FD rate up to 7.5% When is TDS deducted from bank FDs? New tax regime: Under the new tax regime, the basic exemption limit is Rs 4 lakh, but with the enhanced Section 87A rebate, individuals with total income up to Rs 12 lakh pay no income tax, making them eligible to submit Form 15H for FY 2025-26. Under the new tax regime, the basic exemption limit is Rs 4 lakh, but with the enhanced Section 87A rebate, individuals with total income up to Rs 12 lakh pay no income tax, making them eligible to submit Form 15H for FY 2025-26. Old tax regime: In the old tax regime, the exemption limit is Rs 3 lakh (enhanced to Rs 5 lakh for taxpayers aged 80 years or more), and the 87A rebate applies for income up to Rs 5 lakh, allowing Form 15H submission for FY 2025-26, if the total taxable income does not exceed this threshold. There are still some banks which continue to offer up to 7.85% interest rate on fixed deposits (FD) made by senior citizens (age 60 years and above) for three year tenure and not exceeding Rs 3 below to know the list of banks offering FD interest rate up to 7.85%. YES Bank is offering 7.85% interest rate on FD of three year Bank India is offering 7.8% interest rate on FD of three year tenure. Bandhan Bank is offering 7.75% interest rate on FD for three year tenure for senior showing bank FD rate for three year tenure for senior citizensSource: as of July 2, 2025 RBL Bank is offering 7.6% interest rate on FD for three year tenure. IndusInd Bank is offering up to 7.5% interest rate on FD for three year Deducted at Source (TDS) is required to be deducted by banks if the interest amount in an FD is above Rs 1 lakh in a particular bank. Do note that TDS is not any additional tax, you can get this tax back as a refund or adjust it with your total tax liability at the time of income tax return filing (ITR). Moreover, if you are eligible for a tax refund then you might be eligible for interest on tax instance, if a senior citizen's income is Rs 11 lakh then, it's not subject to income tax due to Section 87A tax rebate under the new tax regime for FY 2025-26. Section 87A tax rebate is available for up to Rs 12 lakh income level under the new tax a senior citizen can submit Form 15H to prevent TDS deduction if his total income after all deductions claim and Section 87A rebate is below the taxable limit like Rs 12 lakh for the new tax regime or Rs 5 lakh for the old tax the fact that no income tax is levied on such an income level (below Rs 12 lakh), banks and other financial institutions will still deduct TDS. This is because the law mandated them to deduct TDS once the interest/income amount crossed a particular threshold which was Rs 1 lakh for senior citizens. This happens because banks are not aware about tax liability and deduct TDS whenever the annual interest amount crosses Rs 1 lakh. So, can such a senior citizen file form 15H to avoid TDS on fixed deposits in such 15H applies based on the final tax liability after considering exemptions and rebates.