As per an ET report, right here’s a comparability of the rates of interest provided by the Senior Citizens Savings Scheme and the charges on 5-year mounted deposits for senior residents, together with different essential options to contemplate.
SCSS vs FDs: Eligibility
SCSS: You can open an SCSS account in the event you’re over 60 years outdated. Retired civilian staff between 55 and 60 also can 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FDs: Senior citizen mounted deposits will be opened by anybody who’s 60 years outdated or older.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 possibly can declare a tax deduction of as much as Rs 1.5 lakh over the five-year 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 revenue tax deductions.
SCSS vs FDs: Interest charges
SCSS: The authorities critiques and modifications 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 price you get is determined by which financial institution you select. Keep in thoughts that rates of interest can differ based mostly on whether or not you are investing in a daily 5-year mounted deposit or a tax-saving mounted deposit.
| Bank Name | Interest Rates (p.a.) | Additional charges provided to Super Senior Citizen* (over and above to senior citizen charges) | ||||
| Highest slab | 1-year tenure (%) | 3-year tenure (%) | 5-year 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 3 years | 6.50 | 7.25 | 6.75 | — |
| Jana Small Finance Bank | 9.00 | three hundred and sixty five 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 12 months | 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 12 months to 2 years | 8.25 | 7.75 | 7.75 | — |
| Jammu & Kashmir Bank | 7.55 | 1 12 months 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 | 3 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 12 months | 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 12 months to three years | 7.00 | 8.00 | 7.50 | — |
| HSBC Bank | 7.75 | 732 days to lower than 3 years | 4.50 | 7.50 | 6.50 | — |
| Standard Chartered Bank | 8.00 | 2 years to lower than 3 years | 7.65 | 7.60 | 7.25 | — |
| Note: *Depositors aged 80 years and above | ||||||
| Source: Paisabazaar.com as cited by ET | ||||||
ALSO READ | Short-term mounted deposits: Earn FD charges as much as 8.75%; high banks for highest rates of interest for lower than 1 12 months tenure
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 possibly can spend money on mounted deposits. However, rates of interest can fluctuate based mostly on whether or not you select a daily 5-year FD or a tax-saving FD (which has a restrict of Rs 1.5 lakh), and on whether or not the overall funding is under 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 revenue is over Rs 50,000. However, in case your curiosity revenue is under Rs 50,000 in a monetary 12 months and you submit Form 15G/15H to the publish workplace or financial institution, TDS will not be deducted.
