SCSS vs senior citizen FDs: The Senior Citizen Saving Scheme (SCSS) provided by the postal service and fixed deposits (FDs) in banks are commonly chosen investment avenues for older individuals. This comparison outlines the interest rates offered by SCSS and bank FDs for senior citizens.
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SCSS interest rate- According to ET, the SCSS interest rate remains unchanged at 8.2% for January-March 2024. The scheme has a 5-year tenure (extendable by 3 years), with quarterly fully taxable interest payments. The minimum deposit is Rs 1000, in multiples of Rs 1000, up to a maximum of Rs 30 lakh per individual across all SCSS accounts. Also, investments in the scheme qualify for Section 80C benefits under the Income Tax Act, 1961.
Now, let’s see the interest rates offered by major banks for senior citizen fixed deposits with a 5-year tenure.
SBI senior citizen FD– As per the SBI website, the bank offers interest rates between 4% and 7.50%, including SBI We Care, for durations of 7 days to 10 years. Specifically, the interest rate for a 5-year tenure is 7.25%.
Canara Bank senior citizen FD– Canara Bank offers interest rates from 3.50% to 7.75% for durations of 7 days to 10 years. Specifically, there is a 7.30% interest rate for a 5-year tenure.
PNB Bank senior citizen FD– Punjab National Bank offers interest rates for senior citizens ranging from 4% to 7.75% for periods of 7 days to 10 years.
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For super senior citizens, the rates range from 4.30% to 8.05%. Specifically, the bank provides a 7% interest rate for senior citizens and a 7.30% rate for super senior citizens on a 5-year tenure.
HDFC Bank senior citizen FD– HDFC Bank offers interest rates for senior citizens ranging from 4% to 7.75%, which includes the HDFC Bank Senior Citizen Care FD. Specifically, the bank provides a 7.50% interest rate for a 5-year tenure.
ICICI Bank senior citizen FD– ICICI Bank offers interest rates ranging from 3.50% to 7.50%, which includes the ICICI Golden Years FD. Specifically, the bank provides a 7.50% interest rate for a 5-year tenure.
Axis Bank senior citizen FD– Axis Bank offers interest rates for senior citizens ranging from 3.50% to 7.75%. Specifically, the bank provides a 7.75% interest rate for tenures ranging from 5 to 10 years.
Comparison between SCSS and FDs for senior citizens in SBI, HDFC Bank, ICICI Bank, Axis Bank, and PNB:
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| Bank | Interest rate | Tenure |
| SBI | 7.25% | 3 years to less than 5 years |
| Canara Bank | 7.3 | 3 Years to less than 5 Years |
| PNB | 7% for senior citizens | 3 years & upto 5 years |
| 7.30% for super senior citizens | ||
| HDFC Bank | 7.5 | 4 Year 7 Months 1 day < = 5 Years |
| ICICI Bank | 7.50% | 3 years 1 day to 5 years |
| Axis Bank | 7.75% | 5-10 years |
