Fixed deposits or term deposits are extremely popular in our country because of the assured returns they provide. They’re also extremely easy to invest in, are available in multiple terms and involve high liquidity. However, 10% TDS is deducted by a bank if the interest income across all the FDs with it exceeds Rs 40,000 in a year. This threshold is Rs 50,000 for senior citizens.That said, a 20% TDS is applicable if you don’t submit your PAN card details to the bank. But no TDS is applicable if the total annual income of the investor is less than the minimum taxable amount of Rs 2.5 lakh, which can be waived by submitting Form 15H (if you’re a senior citizen) or 15G (if you’re not a senior citizen) to the bank, according to BankBazaar.However, with the Reserve Bank of India leaving the repo rate unchanged at 4% for almost a year now to counter the economic fallout of the Covid-19 pandemic, most of the banks have lowered their fixed deposit interest rates. This has been a cause of concern for countless risk-averse investors like senior citizens who heavily rely on their FD returns not just to accomplish their financial goals but also to fund their day-to-day expenses.