SCSS is better for the elderly or bank FD, where will you get more interest?

Bank FD vs SCSS: After retirement, every person is worried that he should not have shortage of money. In such a situation, people want to invest their retirement fund at the right place. In such a situation, the Post Office Senior Citizen Savings Scheme of their post office is a great investment option. In this, senior citizens get a strong interest rate. Citizens were getting good returns in this scheme even when banks were offering only 6% interest. But since May 2022, the Reserve Bank has continuously increased its repo rate. Only after this, many banks are offering up to 8% interest to their senior citizen customers. In such a situation, confusion has increased among the people as to where they should invest in SCSS or Bank FD. Let’s know about this-

How much interest is being received in SCSS-

The government had announced in December 2022 that it was increasing the interest rates of the Senior Citizen Savings Scheme to 8 percent. These rates are for the January-March quarter. On the other hand, if we talk about Axis Bank, it is offering a maximum interest rate of 8.01% on FDs of 2 years to 30 months to its senior citizens on FDs of less than Rs 2 crore. At the same time, interest rates ranging from 3.50 percent to 7.75 percent are being offered on FDs ranging from 7 days to 10 years. At the same time, State Bank is offering 3.50 percent to 7.00 percent interest rate to senior citizens on FDs of less than Rs 2 crore. HDFC Bank is offering interest ranging from 3.50 per cent to 7.60 per cent.

Tenure of SCSS vs Bank FD-

Talking about the duration of Senior Citizen Saving Scheme, senior citizens can invest money in it for a total of 5 years. In this scheme, you can extend the investment of 5 years for further 3 years. Talking about bank FD, you can invest money in it for 7 days to 10 years. Significantly, on investing in the SCSS scheme, senior citizens get a rebate of Rs 1.5 lakh under Section 80C of Income Tax. Whereas in FD, this exemption is available only on deposits of more than 5 years.

How much can be invested in SCSS vs Bank FD

Presenting the Budget 2023, Finance Minister Nirmala Sitharaman said for the SCSS scheme that its deposit limit has been increased from Rs 15 lakh to Rs 30 lakh. At the same time, the minimum investment limit in the scheme is only Rs 1,000. At the same time, the customer can do bulk FD of Rs 2 crore or more in the bank according to his requirement. In such a situation, if you want to get a strong return in a short period, then the Senior Citizen Saving Scheme of the Post Office is a great option.

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