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Business Standard
30-06-2025
- Business
- Business Standard
FD interest rates up to 9.10%: 15 banks offer 7.80% or more to seniors
Can you still get over 8 per cent on a fixed deposit? Despite this year's repo rate cuts, the answer is yes—at least for now. The Reserve Bank of India (RBI) has cut the repo rate by 100 basis points since February 2025. In response, several banks have reduced their fixed deposit (FD) interest rates. But a few small finance and private banks continue to offer interest rates above 7.80 per cent, especially for senior citizens. Top FD rates as of June 30, 2025 For deposits below Rs 3 crore, some small finance banks are offering relatively high FD rates for senior citizens. As of June 28, 2025, Unity Small Finance Bank is offering the highest FD rate at 9.10 per cent for a tenure of 1001 days. Suryoday Small Finance Bank follows with 8.80 per cent for tenures above 30 months and up to 3 years. Utkarsh Small Finance Bank is offering 8.75 per cent for deposits held between 2 and 3 years. Slice Small Finance Bank is offering 8.50 per cent for a narrowly defined window of 18 months 1 day to 18 months 2 days. Equitas Small Finance Bank offers 8.40 per cent for a tenure of 888 days. All rates apply to senior citizens and are available on deposits of less than Rs 3 crore. These figures are based on each bank's official website as of June 28, 2025. Regular depositors can also find rates above 8 per cent, though options are fewer. Experts say locking in the current rate may help, as further cuts could follow if the repo rate continues to drop. Tax rules on FD interest Interest earned on fixed deposits is taxable. If the interest exceeds a certain threshold, tax is deducted at source. 'Interest earned on FDs is taxable, with tax deducted at source (TDS) if it exceeds a specified limit,' said Adhil Shetty, CEO of BankBazaar. The 2025 Union Budget raised the TDS threshold: For general citizens: From Rs 40,000 to Rs 50,000 For senior citizens: From Rs 50,000 to Rs 1 lakh Take the example of Nupur, a 38-year-old resident of Noida. She earns Rs 75,000 in annual FD interest. Since the new threshold for general citizens is Rs 50,000, TDS applies on the excess Rs 25,000. At 10 per cent, the deducted tax is Rs 2,500. That Rs 75,000 also counts as part of her total taxable income. But if her overall income is below Rs 2.5 lakh, she doesn't owe additional tax. To avoid TDS in such a case, she can submit Form 15G at the start of the financial year, declaring her income falls below the taxable limit. Senior citizens can submit Form 15H for the same purpose. Take a look at the banks offering the highest interest rate as of June 28, according to PaisaBazaar: Small Finance Banks 1. Equitas Small Finance Bank Highest rate: 8.40 per cent for 888 days 1-year: 8.10 per cent 3-year: 8.00 per cent 5-year: 7.75 per cent 10-year: 7.75 per cent No extra rate for super senior citizens 2. ESAF Small Finance Bank Highest rate: 8.10 per cent for 444 days 1-year: 5.25 per cent 3-year: 6.50 per cent 5-year: 6.25 per cent 10-year: 6.25 per cent No extra rate for super senior citizens 3. Jana Small Finance Bank Highest rate: 8.25 per cent (Above 1 year to 3 years) 1-year: 8.00 per cent 3-year: 8.25 per cent 5-year: 8.20 per cent 10-year: 7.00 per cent No extra rate for super senior citizens 4. Slice Small Finance Bank Highest rate: 9.00 per cent (18 months 1 day to 18 months 2 days) 1-year: 7.00 per cent 3-year: 8.25 per cent 5-year: 8.25 per cent 10-year: 6.75 per cent No extra rate for super senior citizens 5. Suryoday Small Finance Bank Highest rate: 8.80 per cent (Above 30 months to 3 years) 1-year: 8.30 per cent 3-year: 8.80 per cent 5-year: 8.40 per cent 10-year: 7.65 per cent No extra rate for super senior citizens 6. Ujjivan Small Finance Bank Highest rate: 8.25 per cent for 2 years 1-year: 8.15 per cent 3-year: 7.70 per cent 5-year: 7.70 per cent 10-year: 7.00 per cent No extra rate for super senior citizens 7. Unity Small Finance Bank Highest rate: 9.10 per cent for 1001 days 1-year: 7.50 per cent 3-year: 8.50 per cent 5-year: 8.50 per cent 10-year: 7.50 per cent No extra rate for super senior citizens 8. Utkarsh Small Finance Bank Highest rate: 8.75 per cent (2 to 3 years) 1-year: 6.75 per cent 3-year: 8.75 per cent 5-year: 8.25 per cent 10-year: 7.75 per cent No extra rate for super senior citizens Private Sector Banks 9. Bandhan Bank Highest rate: 8.25 per cent for 1 year 1-year: 8.25 per cent 3-year: 7.75 per cent 5-year: 6.60 per cent 10-year: 6.60 per cent No extra rate for super senior citizens 10. CSB Bank Highest rate: 7.90 per cent for 13 months 1-year: 5.50 per cent 3-year: 6.25 per cent 5-year: 6.25 per cent 10-year: 6.50 per cent No extra rate for super senior citizens 11. DCB Bank Highest rate: 7.90 per cent (25 to 26 months) 1-year: 7.25 per cent 3-year: 7.25 per cent 5-year: 7.25 per cent 10-year: 7.25 per cent No extra rate for super senior citizens 12. Jammu & Kashmir Bank Highest rate: 7.80 per cent for 888 days 1-year: 7.25 per cent 3-year: 7.25 per cent 5-year: 7.00 per cent 10-year: 7.00 per cent No extra rate for super senior citizens 13. RBL Bank Highest rate: 7.80 per cent for 500 days 1-year: 7.60 per cent 3-year: 7.60 per cent 5-year: 7.50 per cent 10-year: 7.50 per cent Super senior citizens get +0.25 per cent on all tenures 14. SBM Bank India Highest rate: 8.55 per cent (Above 18 months to less than 2 years 3 days) 1-year: 8.00 per cent 3-year: 7.80 per cent 5-year: 8.25 per cent 10-year: 7.50 per cent No extra rate for super senior citizens 15. YES Bank Highest rate: 7.85 per cent (3 years to less than 5 years) 1-year: 7.25 per cent 3-year: 7.85 per cent 5-year: 7.50 per cent 10-year: 7.50 per cent
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Business Standard
06-06-2025
- Business
- Business Standard
Thinking of withdrawing your PF? A surprise 30% tax may hit you
Are you tempted to withdraw your Provident Fund (PF) savings after quitting your job? Doing that without completing five years of continuous service could dent your savings, with up to 30 per cent of the amount going in taxes. Legal experts and tax professionals say that hasty PF withdrawals defeat the purpose of long-term retirement savings and have hefty tax implications. 'Withdrawing your PF before five years of continuous service is treated as a taxable event,' said Vishal Gehrana, partner designate at Karanjawala & Co. and advocate-on-record at the Supreme Court. 'Not only is the entire amount taxable as per your slab, but if you haven't submitted your PAN, TDS (tax deducted at source) is deducted at 30 per cent.' What exactly gets taxed? Both employee and employer contributions, and the interest earned on them, become taxable income under Section 192A of the Income-tax Act, 1961. The Employees' Provident Fund Organisation (EPFO) deducts TDS if the withdrawal is more than Rs 50,000, said Gehrana. Kunal Savani, partner at Cyril Amarchand Mangaldas, said: 'The employer's share along with interest becomes taxable as profits in lieu of salary. While the employee's own contribution may be tax-free, interest on it could still be taxable, especially if thresholds are crossed.' Are there exceptions? Yes. Tax is not applicable if the withdrawal is due to ill health, business closure, or reasons beyond the employee's control. In such cases, the law provides relief. Also, once an individual completes five years of continuous service or withdraws PF after retirement, the entire amount is tax-exempt under Section 10(12) of the Income-tax Act. Mistakes to avoid Withdrawing PF instead of transferring it when switching jobs Not maintaining five years of cumulative service Failing to submit PAN, leading to higher TDS Assuming Form 15G/H always prevents TDS (they work only if income is below the taxable limit) Treat PF as long-term asset 'Instead of withdrawing PF early, transferring the account to the new employer preserves service continuity and tax benefits,' said Gehrana. He recommended maintaining documents to support your case in the event of a tax notice. A recent X post by tax professional Sujit Bangar summed it up aptly: 'Withdrawing PF after resigning job? If you've not completed 5 years, the entire amount is taxable. 30 per cent TDS. Don't act in a hurry.' Transfer your PF account when changing jobs to maintain service continuity and qualifying for tax-free withdrawals after five years. Avoid full withdrawals unless absolutely necessary. Instead, opt for partial advances allowed for medical, housing, or education needs, which are typically not taxable. Time your withdrawal in a financial year when your total income is below the taxable limit to reduce or eliminate tax burden. Submit Form 15G or 15H, if eligible, to avoid TDS on withdrawals below the tax threshold.
Mint
29-04-2025
- Business
- Mint
From Vivad Se Vishwas to Forms 15G and 15H, these 5 income tax deadlines expire on April 30. Check list
There are a number of income tax (I-T)-related deadlines that are set to expire on April 30, 2025. One of the most pertinent ones is the deadline for the Vivad Se Vishwas Scheme 2024. Meant to reduce pending income tax litigation, among other things, this scheme will finally end on April 30. This is a dispute resolution mechanism for taxpayers' pending income tax litigation. All the income tax-related outstanding appeals on July 22, 2024, will be eligible for the Vivad Se Vishwas Scheme 2024, whether they are withdrawn, disposed of or not. These are some of the key deadlines which income taxpayers should be aware of: I. Vivad Se Vishwas Scheme: The Central Board of Direct Taxes (CBDT) has notified April 30 as the last date, on or before which a declaration in respect of tax arrears can be filed by the declarants to the designated authority under the Direct Tax Vivad Se Vishwas Scheme, 2024. II. Deposit of tax deducted at source (TDS): April 30 is the last date for the January to March 2025 period when the assessing officer has permitted quarterly TDS deposits under section 192, 194A, 194D or 194H. III. Form 15G and Form 15H: April 30 is the last date for uploading declarations received from recipients in Form 15G and 15H during the quarter ending March 2025. For the uninitiated, 15G and 15H are self-declaration forms submitted by taxpayers to the bank requesting not to deduct TDS on interest income because their annual income falls below the basic exemption limit. Form 15G is submitted by taxpayers below 60 years of age and 15H by taxpayers above 60 years of age. IV. Tax deducted under section 194S: April 30 is the due date for furnishing of challan-cum-statement in respect of tax deducted under section 194S (by a specified person) in March 2025. V. Tax deducted under other provisions: April 30 is the due date for deposit of tax deducted by an assessee other than an office of the government for March 2025. Additionally, it is the due date for furnishing challan-cum-statement in respect of tax deducted under sections 194-IA, 194-IB, 194M and 194S. Visit here for all personal finance updates. First Published: 29 Apr 2025, 06:43 PM IST
