Banks offer higher interest rates on fixed deposits (FDs) for senior citizens and rates differ depending on the bank. These are the banks offering best interest rates on senior citizen tax saving FDs.

Tax benefits
The investment is exempt from deduction under Section 80C is a big advantage of a tax-saving fixed deposit. Investors can make investment up to Rs. 1.5 lakh for a fixed term of 5 years in order to receive tax benefits.

The Income Tax Act’s newly added section 80TTB states that interest payments made on deposits held with banks, co-operative banks, or post offices up to Rs 50,000 are effectively tax-exempt.

Furthermore, no TDS will be deducted from interest payments received up to Rs 50,000 in a fiscal year. A senior citizen might avoid TDS deduction by submitting Form-15H to the bank.