Looking for a good investment plan? Then this article is for you. If you’re looking to grow your investment without any risk, a Fixed Deposit (FD) is a solid choice. Likewise, the government-supported Senior Citizen Savings Scheme (SCSS) is a fantastic option for older adults, helping them build a nice retirement fund. Plus, with this scheme, you receive interest payments every three months.

 

Now, let’s talk about the profit side of things. A common question for seniors is whether to go with a bank FD or the SCSS. Both options allow for monthly or lump sum investments, meaning you can either put in a little bit each month or invest a larger sum all at once. For instance, if you invest Rs 7,50,000, let’s see which option between the State Bank of India (SBI) 5-year FD and SCSS gives you better returns.

 

SBI FD Interest Rates:

– For regular citizens: 3.50% to 7.25% per year

– For senior citizens: 4.00% to 7.75% per year

– SBI Tax Saving FD: 6.50% (regular citizens) and 7.50% (senior citizens)

 

Calculating the SBI 5-Year FD:

– Deposit amount: Rs 7,50,000

– Total interest earned: Rs 2,85,315

– Maturity amount: Rs 10,35,315

 

Interest Rates for the Senior Citizen Savings Scheme (SCSS):

– Current rate (effective January 1, 2024): 8.2% per year

– Interest is paid quarterly (on April 1, July 1, October 1, and January 1)

 

Eligibility for SCSS:

– Anyone aged 60 or older can take advantage of this scheme.

– Individuals between 55 and 60 who opt for a Voluntary Retirement Scheme (VRS) can also invest.

 

You can only open a joint account under this scheme with your spouse.

 

SCSS Deposit Limits and Tax Perks:

– Minimum deposit: Rs 1,000

– Maximum deposit: Rs 30,00,000

– Tax perks: You can claim deductions under section 80C for your investments.

 

SCSS Calculation:

– Maturity amount: Rs 10,57,500

– Quarterly interest: Rs 15,375

– Total interest earned over 5 years: Rs 3,07,500

 

Where to Open the Account:

Getting started with the Senior Citizen Savings Scheme (SCSS) is super simple. You can open an account at any government bank or post office. The SCSS has a 5-year term, which can be extended for an additional 3 years. Plus, since interest is paid quarterly, it provides a steady income stream for senior citizens.

 

Desclaimer: For any financial invest anywhere on your own responsibility, Times Bull will not be responsible for it.