These tax saving fixed deposits promise over 8% returns to senior citizens; details here

Fixed deposit schemes are one of the safest investment options for elderly people. They give assured returns, are risk-free and also help save tax. Senior citizens should note that they can be one of the biggest beneficiaries of the Reserve Bank of India’s repo rate hike. The rate hike has led several banks to increase their fixed deposit rates in line with the RBI’s policy. Some banks are offering over 8 per cent returns on tax-saving fixed deposits of 5 years. But, before investing in the scheme, you must note that the tax-saver fixed deposits have a lock-in period of 5 years. Loan and overdraft facility, partial withdrawal and premature withdrawal facilities are not available under this scheme. Furthermore, only Hindu Undivided Family (HUF) and individuals are eligible to invest in the scheme. Here is all you need to know about some tax-saver fixed deposit schemes: Jana Small Finance Bank: You can get a tax deduction of up to Rs 1.5 lakh under Section 80C of the Income Tax Act, 1961, if you invest in Jana Bank’s Tax Saver Fixed Deposit Scheme. The tenure will be 1,825 day or 5 years. No premature withdrawals are allowed. For the regular customers, the interest rate on the FD will be 7.25 per cent per annum for a period of 5 years. For senior citizens, the interest rate will be 8.05 per cent. The scheme came into effect from 15 June this year. Utkarsh Small Finance Bank: The bank offers an interest rate of 7.5 per cent to general customers and 8.25 per cent to senior citizens. “In case of joint deposits, the Tax benefit under 80C will be available only to the first holder of the deposit”, as per the bank. The minimum investment required is Rs 1,000, while the maximum limit is Rs 1.5 lakh. There is no provision of auto-renewal in the scheme. The interest will be paid out either quarterly, monthly (At discounted rate) or at maturity. Read all the Latest News , Trending News ,  Cricket News , Bollywood News , India News and Entertainment News here. Follow us on Facebook, Twitter and Instagram.