SCSS vs bank FD: While senior citizens have an array of investment options at their disposal, many still find solace in traditional avenues like small savings schemes and bank fixed deposits (FDs). One such avenue is the Senior Citizen Saving Scheme (SCSS), specifically designed for senior citizens, offering an 8.2 percent interest rate from July to September 2023. It's worth noting that the government revises the interest rate for the Senior Citizen Saving Scheme every quarter.
Several banks are now offering competitive returns on FDs for senior citizens, outperforming the SCSS. Below, we highlight bank FD schemes that provide higher interest rates than the SCSS, based on data from bankbazaar.com.
Key Features of the Senior Citizen Saving Scheme: The Senior Citizen Savings Scheme, supported by the government, is designed specifically for senior citizens. You can invest your money in it for up to 5 years and earn 8.2% interest rate. You can start with as little as Rs 1,000 or go up to Rs 30 lakh. Moreover, it offers tax exemptions of up to Rs 1.5 lakh under Section 80C of the Income Tax Act. Let's also check out banks that may offer better Fixed Deposit rates for senior citizens during this time.
Banks offering higher FD interest rates for senior citizens:
Yes Bank: This private sector bank extends a maximum interest rate of 8.25 percent on FD schemes for senior citizen customers.
Bandhan Bank: Customers aged 60 years and above can benefit from an 8.35 percent interest rate offered by Bandhan Bank.
Ujjivan Small Finance Bank: Ujjivan Small Finance Bank offers a competitive interest rate of 8.75 percent on its fixed deposit scheme for senior citizens.
Suryoday Small Finance Bank: Senior citizen customers can enjoy an impressive 9.6 percent interest rate from Suryoday Small Finance Bank.
Jana Small Finance Bank: Jana Small Finance Bank extends a 9.00 percent interest rate on Senior Citizen FDs.
ESAF Small Finance Bank: Senior citizens can avail themselves of a 9 percent interest rate from ESAF Small Finance Bank.
Utkarsh Small Finance Bank: Utkarsh Small Finance Bank offers an attractive 8.6 percent interest rate on FD schemes for customers aged 60 years and above.
Unity Small Finance Bank: Unity Small Finance Bank provides senior citizens with a lucrative 9.5 percent interest rate on its FD scheme.
These banks are offering competitive FD interest rates that surpass the SCSS, providing senior citizens with more attractive investment options to consider.
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