SCSS vs Senior Citizen Fixed Deposit: For senior citizens, the options are Senior Citizen Saving Scheme and Senior Citizen Fixed Deposit (SCFD). Let us know which of the two would be right to invest in.
SCSS vs Senior Citizen Fixed Deposit: We all like to invest our savings somewhere which is safe and profitable. There are many types of schemes available in the market regarding this. Talking about senior citizens, there are many investment options for them through which they can make their life after retirement financially strong. If you are also looking for a particular senior citizen scheme, then you can choose from two types of investment options.
For senior citizens, there are options like Senior Citizen Saving Scheme (SCSS) and Senior Citizen Fixed Deposit (SCFD) in which they can invest their savings safely and for best returns. However, what is the difference between Senior Citizen Savings Scheme and Senior Citizen Fixed Deposit? Which of the two can be a good option to invest in? Which will be the scheme with the best returns? Let us answer all such questions and tell you in detail about Senior Citizen Saving Scheme and Senior Citizen Fixed Deposit.
Senior Citizen Saving Scheme VS Senior Citizen FD
Senior Citizens Savings Scheme is known as a retirement benefit scheme for senior citizens. Under this, people above 60 years of age can get good returns by investing a lump sum amount. In comparison, there is a good interest rate deal under Senior Citizen Fixed Deposit. However, both the schemes also have different benefits. In such a situation, the investor can decide for himself which scheme can be better for him by knowing the benefits.
Senior Citizen Savings Scheme
SCSS is also called Secure and Safe Investment Scheme. This scheme comes with a maturity period of 5 years. If you wish, you can extend it for three more years before maturity. You can open its account by going to any post office in India. Subscribers can even get their SCSS account transferred to any branch in the country.
In this, at least Rs 1 thousand has to be deposited in advance. After this, if you want, you can increase it to any amount beyond Rs 1000. People associated with this scheme also get taxi rebate of up to Rs 1.5 lakh under Section 80C of the Income Tax Act, 1961.
Senior Citizen Fixed Deposit Benefits
- Compared to normal FD, the bank gives more interest to senior citizens. Generally, the bank gives 0.5 percent additional interest to senior citizens.
- Investors get different options to get the interest amount like monthly, quarterly, half-yearly or annually. You can also increase your monthly income by taking interest every month.
- For some fixed deposits, the maturity time is 5 years or more, in which you can also get tax benefits.
Difference Between SCSS and SCFD
Senior Citizen Savings Scheme offers an interest rate of 8.2 percent per annum. Whereas, if you invest in FD for less than 5 years, you do not get any tax benefit of any kind.
There is a maximum investment limit in the Senior Citizens Savings Scheme. Whereas, there is no limit for maximum investment in FD. Apart from this it comes with many options.