Senior Citizen Savings Scheme: Senior Citizen FD is an FD scheme available with better interest rates. The lock-in period is the same in both SCSS and FD. But there is some difference between these two.
Senior Citizen Fixed Deposit: Everyone’s desire is for a safe investment. There are many investment options available for senior citizens. Based on these investment options, senior citizens can easily meet their financial goals after retirement. If there are any senior citizens in your house or you yourself are above 60 years of age, then you can choose Senior Citizen Saving Scheme (SCSS) and Senior Citizen Fixed Deposit for investment.
SCSS Retirement Benefit Plan
SCSS is a retirement benefit plan that helps individuals above 60 years of age invest a lump sum amount to get good returns. Senior Citizen FD is an FD scheme available with better interest rates. The lock-in period is the same in both SCSS and FD. But there is some difference between these two, due to which their benefits are also different. Let us know which of these two schemes will be better for investment-
Features of Senior Citizen Savings Scheme
- This is a government-backed investment scheme, so SCSS can be considered as a secure and safe investment scheme.
- Subscribers also get tax rebate of up to Rs 1.5 lakh under Section 80C of the Income Tax Act, 1961.
- This scheme has a maturity period of five years. But you can extend it for next three years.
- Opening a SCSS account is quite easy. You can open an account by visiting any bank or post office across the country. Similarly, subscribers can transfer their SCSS account to any branch across the country.
- The minimum deposit amount under the scheme is Rs 1,000. After this you can increase the amount in multiples of Rs 1,000. A maximum investment of up to Rs 30 lakh can be made in a financial year.
Senior Citizen FD Scheme
- Special interest is given to senior citizens by banks as compared to normal FD.
- Generally, the bank is given 0.5 percent additional interest to elderly customers.
- Investors can select different options to get the interest amount. Monthly, quarterly, half-yearly or annual are all options in these options. You can increase your monthly income by taking interest every month.
- Tax benefits are also available on some FDs. Their maturity time is five years or more.
Difference between the two
- Senior Citizen Savings Scheme is offering an interest rate of 8.2 percent per annum and is covered under section 80C. Apart from this, if you invest in FD for less than five years, then you do not get any kind of tax benefit.
- The second difference between these two is that there is a maximum investment limit under SCSS. Whereas there is no such limit in FD. Apart from this, FD comes with many options.
- Which of these two investment options you have to choose, it ultimately depends on the financial goals of the investor and the availability of money with him.
