- Date : 04/01/2023
- Read: 2 mins
Banks offering 9.5% interest on FDs
After the Reserve Bank of India (RBI) hiked interest rates, many banks upped their fixed deposit interest rates. So, it is good news for depositors who can now enjoy higher returns on their fixed deposits.
If you want to invest in a fixed deposit scheme for guaranteed returns, you can choose banks offering 9.5% interest on their schemes. These banks are approved by the RBI and offer FDs across tenures. So, let’s look at the banks that offer more than 9% interest rates on FDs.
Suryoday Small Finance Bank
A small finance bank, Suryoday offers interest up to 9.5% on general fixed deposit schemes. Senior citizens can earn 0.50% additional interest on their deposits. The annualised FD rate starts from 4% and goes up to 9.32% for normal individuals, and for senior citizens, the rate goes up to 9.59%.
The annualised interest rate on the deposit for different terms is as follows –
Unity Small Finance Bank
Another small finance bank registered with RBI, Unity, also offers attractive interest rates on its deposits. The interest rate starts from 4.50% for both normal and senior citizens and goes up to 9% for senior citizens. The 9% interest rate is allowed on deposits made for 501 days.
The interest rate offered by the bank are as follows –
Tax on FDs
While you can enjoy a high interest income on your fixed deposit with these two banks, remember the tax aspect of the deposits. 5-year deposits give you tax benefits on the amount deposited. You can claim a deduction of up to Rs.1.5 lakhs under Section 80C.
In the case of interest, the interest income is taxable if you are below 60 years of age. The interest income will be clubbed with your gross income and taxed at your income tax slab rates. For senior citizens, however, interest income up to Rs.50,000 is tax-free under Section 80TTB of the Income Tax Act, 1961.
So, know the interest rates and their tax implications too when investing in FDs.