Senior Citizen Savings Scheme: There are many investment options for senior citizens. Senior citizens can achieve their financial targets after retirement by investing in different schemes.
Senior Citizen FD Interest Rate: No matter where you invest, you want to get maximum returns and also keep your money safe. Senior citizens are given higher interest on FD by every bank. Apart from this, there are many investment options for senior citizens. Senior citizens can achieve their financial targets after retirement by investing in different schemes. If you yourself are retired or there is a senior citizen in your house, then you can choose Senior Citizen Saving Scheme (SCSS) or Senior Citizen FD as an investment option.
SCSS Retirement Plan
SCSS is a benefit scheme for retired people. It gives good returns to people above 60 years of age. In this you can deposit lump sum money. Senior citizens also get good returns on FD. The lock-in period in both SCSS and FD is almost equal. But there is some difference between the two. Both have different benefits.
Features of Senior Citizen Saving Scheme
- It is a government-backed investment scheme, hence SCSS is considered 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 saving scheme has a maturity period of five years. You can extend it for the next three years.
- Opening a SCSS account is quite easy. You can open this account in any post office or bank. Similarly, subscribers can transfer their SCSS account to any branch across the country.
- A minimum investment of Rs 1,000 has to be made in this scheme. You can increase it by any number in multiples of Rs 1,000. You can invest a maximum of Rs 30 lakh in a financial year.
Senior Citizen FD Scheme
- More interest is given by banks to senior citizens as compared to normal FD. Generally banks give 0.5 percent additional interest.
- Investors can select different options to get the interest amount. These options include monthly, quarterly, half-yearly or annual. You can increase your monthly income by taking interest every month.
- Tax benefits are also available on some FDs, their maturity period is five years or more.
Difference between the two
- Up to 8.2 percent interest is being offered by banks on Senior Citizen Saving Scheme. This is covered under section 80C. If you invest in FD for less than five years, you do not get any tax benefit.
- The second difference between the two is that there is a maximum investment limit under SCSS. Whereas there is no limit in FD.
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