As per an ET report, right here’s a comparability of the rates of interest supplied by the Senior Citizens Savings Scheme and the charges on 5-yr mounted deposits for senior residents, together with different necessary options to think about.
SCSS vs FDs: Eligibility
SCSS: You can open an SCSS account in case you’re over 60 years outdated. Retired civilian staff between 55 and 60 may also open an SCSS account, however they need to make investments inside one month of receiving their retirement advantages. Retired protection staff aged 50 to 60 have the identical requirement: they should make investments inside a month after getting their retirement advantages.
FDs: Senior citizen mounted deposits will be opened by anybody who’s 60 years outdated or older.
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SCSS vs FDs: Tax advantages
SCSS: Under Section 80C of the Indian Income Tax Act, 1961, you’ll be able to declare a tax deduction of as much as Rs 1.5 lakh over the 5-yr time period of the Senior Citizens Savings Scheme.
FDs: Investors with tax-saving mounted deposits which have a time period of 5 years or extra are eligible for earnings tax deductions.
SCSS vs FDs: Interest charges
SCSS: The authorities opinions and adjustments the rates of interest for the Senior Citizens Savings Scheme each three months. Currently, the speed is 8.2%.
FDs: Banks can change the charges at any time, so the precise fee you get will depend on which financial institution you select. Keep in thoughts that rates of interest can differ based mostly on whether or not you are investing in an everyday 5-yr mounted deposit or a tax-saving mounted deposit.
| Bank Name | Interest Rates (p.a.) | Additional charges supplied to Super Senior Citizen* (over and above to senior citizen charges) | ||||
| Highest slab | 1-yr tenure (%) | 3-yr tenure (%) | 5-yr tenure (%) | |||
| % | Tenure | |||||
| SMALL FINANCE BANKS | ||||||
| AU Small Finance Bank | 8.50 | 18 months | 7.00 | 8.00 | 7.75 | — |
| Equitas Small Finance Bank | 9.00 | 444 days | 8.70 | 8.50 | 7.75 | — |
| ESAF Small Finance Bank | 8.75 | 2 years to lower than Three years | 6.50 | 7.25 | 6.75 | — |
| Jana Small Finance Bank | 9.00 | 365 days | 9.00 | 7.75 | 7.75 | — |
| NorthEast Small Finance Bank | 9.25 | 555 days; 1111 days | 8.50 | 8.75 | 7.00 | — |
| Suryoday Small Finance Bank | 9.10 | Above 2 years to three years | 7.35 | 9.10 | 8.75 | — |
| Ujjivan Small Finance Bank | 9.00 | 15 months | 8.75 | 7.70 | 7.70 | — |
| Unity Small Finance Bank | 9.50 | 1001 days | 8.35 | 8.65 | 8.65 | — |
| Utkarsh Small Finance Bank | 9.10 | 2 years to three years | 8.60 | 9.10 | 8.35 | — |
| PRIVATE SECTOR BANKS | ||||||
| Axis Bank | 7.85 | 17 months to lower than 18 months | 7.20 | 7.60 | 7.75 | — |
| Bandhan Bank | 8.35 | 1 yr | 8.35 | 7.75 | 6.60 | — |
| City Union Bank | 7.50 | 400 days | 7.00 | 6.75 | 6.50 | — |
| CSB Bank | 7.75 | 401 days | 5.50 | 6.25 | 6.25 | — |
| DBS Bank | 8.00 | 376 days to 540 days | 7.50 | 7.00 | 7.00 | — |
| DCB Bank | 8.60 | 25 months to 26 months | 7.65 | 8.10 | 7.90 | — |
| Federal Bank | 7.90 | 400 days | 7.30 | 7.50 | 7.25 | — |
| HDFC Bank | 7.75 | 5 years 1 day to 10 years & 18 months to lower than 21 months | 7.10 | 7.50 | 7.50 | — |
| ICICI Bank | 7.75 | 15 months to 2 years | 7.20 | 7.50 | 7.50 | — |
| IDFC First Bank | 8.50 | 500 days | 7.00 | 7.75 | 7.50 | — |
| IndusInd Bank | 8.25 | 1 yr to 2 years | 8.25 | 7.75 | 7.75 | — |
| Jammu & Kashmir Bank | 7.55 | 1 yr to lower than 2 years | 7.55 | 7.00 | 7.00 | — |
| Karur Vysya Bank | 8.00 | 444 days | 7.40 | 7.40 | 7.40 | — |
| Kotak Mahindra Bank | 7.90 | 390 days to lower than 23 months | 7.60 | 7.60 | 6.70 | — |
| Nainital Bank | 7.55 | 400 days – Naini Plus 2023 Deposit Scheme | 7.20 | 6.75 | 6.25 | 0.10% on all tenures |
| RBL Bank | 8.50 | 18 months to 2 years | 8.00 | 8.00 | 7.60 | 0.25% on all tenures |
| SBM Bank India | 8.75 | Three years 2 days | 7.60 | 8.10 | 8.25 | — |
| South Indian Bank | 7.90 | 400 Days | 7.20 | 7.20 | 6.50 | — |
| Tamilnad Mercantile Bank | 8.00 | 400 days | 7.50 | 7.00 | 7.00 | — |
| YES Bank | 8.25 | 18 month to lower than 2 years | 7.75 | 8.00 | 8.00 | — |
| PUBLIC SECTOR BANKS | ||||||
| Bank of Baroda | 7.75 | Above 2 years to three years | 7.35 | 7.75 | 7.15 | — |
| Bank of India | 7.75 | 2 years | 7.30 | 7.25 | 6.75 | 0.15% on tenures of 180 days to 10 years |
| Bank of Maharashtra | 7.00 | 1 yr | 7.00 | 6.25 | 6.25 | — |
| Canara Bank | 7.75 | 444 days | 7.35 | 7.30 | 7.20 | 0.10% on 444 days |
| Central Bank of India | 7.75 | 555 days | 7.25 | 7.00 | 6.75 | — |
| Indian Bank | 7.75 | 400 days – IND SUPER | 6.60 | 6.75 | 6.75 | 0.25% on all tenures |
| Indian Overseas Bank | 7.80 | 444 days | 7.40 | 7.00 | 7.00 | 0.25% on all tenures |
| Punjab National Bank | 7.75 | 400 days | 7.25 | 7.50 | 7.00 | 0.30% for tenures as much as 5 years |
| Punjab & Sind Bank | 7.75 | 444 days | 6.70 | 6.50 | 6.50 | 0.15% on tenure of 444 days |
| State Bank of India | 7.60 | 400 days – Amrit Kalash | 7.30 | 7.25 | 7.50 | — |
| Union Bank of India | 7.75 | 399 days | 7.25 | 7.00 | 7.00 | 0.25% on all tenures |
| FOREIGN BANKS | ||||||
| Deutsche Bank | 8.00 | Above 1 yr to three years | 7.00 | 8.00 | 7.50 | — |
| HSBC Bank | 7.75 | 732 days to lower than Three years | 4.50 | 7.50 | 6.50 | — |
| Standard Chartered Bank | 8.00 | 2 years to lower than Three years | 7.65 | 7.60 | 7.25 | — |
| Note: *Depositors aged 80 years and above | ||||||
| Source: Paisabazaar.com as cited by ET | ||||||
SCSS vs FDs: Deposit limits
SCSS: You can deposit as much as Rs 30 lakh within the Senior Citizens’ Saving Scheme.
FDs: There’s no restrict on how a lot you’ll be able to put money into mounted deposits. However, rates of interest can range based mostly on whether or not you select an everyday 5-yr FD or a tax-saving FD (which has a restrict of Rs 1.5 lakh), and on whether or not the entire funding is beneath or above Rs 2 crore.
SCSS vs FDs: Tax Deduction at Source (TDS)
TDS applies to the SCSS and mounted deposits in case your annual curiosity earnings is over Rs 50,000. However, in case your curiosity earnings is beneath Rs 50,000 in a monetary yr and you submit Form 15G/15H to the put up workplace or financial institution, TDS will not be deducted.