SCSS Limit Hike Impact: Due to increasing the limit of senior citizen savings schemes, many banks have continuously increased the interest rates of FDs.
SCSS Limit Hike Impact: Finance Minister Nirmala Sitharaman had made several announcements for every section of the country in her Budget 2023 speech. Giving gifts to senior citizens, the Finance Minister said that the deposit limit of Senior Citizen Savings Scheme (SCSS) has been increased from Rs 15 lakh to Rs 30 lakh. Let’s know about it in detail.
After this increase, this small saving scheme of the post office has become more attractive for the customers. After this announcement, many banks have also continuously increased the interest rates of their FDs. Many banks are offering up to 9 percent interest rate to senior citizens on FD scheme. In such a situation, the question arises that which scheme is better for people above 60 years, SCSS or Bank FD. Let’s know about this-
Senior Citizen Saving Scheme-
Under the Senior Citizen Savings Scheme, any Indian citizen above 60 years can invest up to a maximum of Rs 30 lakh. In this, citizens are getting an annual interest rate of 8 percent. The special thing about this scheme is that it has a maturity period of 5 years. If you deposit Rs 30 lakh in this account, you will get an interest of Rs 20 lakh per month.
SBI Amrit Kalash Scheme
The country’s largest public sector bank i.e. State Bank of India has recently launched a 400-day special FD scheme. The name of this scheme is Amrit Kalash Scheme. Under this scheme, 7.6 percent interest rate is being offered to senior citizens.
Unity Bank FD Scheme (Unity Small Finance Bank)
Unity Small Finance Bank is offering up to 9.5 percent interest rate to its senior citizen customers. This interest is being offered for a period of 1001 days. At the same time, the bank is offering 9.25 percent interest rate on FDs of 181 to 201 and 501 days.
Bandhan Bank FD Scheme
Big private sector bank Bandhan Bank is also offering strong interest rate on FD scheme to senior citizens. The bank is giving 8.5 per cent interest on FD of 600 days. At the same time, it is offering 7.5 percent interest rate to senior citizens on FD of 3 to 5 years.
Central Bank of India FD Scheme
At the same time, the Central Bank of India is offering an interest rate of 7.85 percent on 444-day FD to its senior citizen customers. On the other hand, on non-callable deposits, the bank is offering an interest rate of 8.1 per cent for a period of 444 days.
Jana Small Finance Bank FD Scheme
Jana Small Finance Bank is offering its senior citizens a strong interest rate of 8.8 percent in a short period of 2 to 3 years. At the same time, the bank is offering 8.05 percent interest on FDs of 3 to 5 years and 1 to 2 years on FDs of 1 to 2 years.
SCSS or FD which is a better option?
Significantly, the Senior Citizen Savings Scheme is a government-guaranteed scheme, in which you get protection on the entire deposit amount when you invest. On the other hand, in the FD scheme, there is only a security guarantee of up to Rs 5 lakh. Along with this, you get a deduction of Rs 1.5 lakh under Section 80C of Income Tax on investing in SCSS. Whereas in bank FD, this benefit is available only on tax saver FD.
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