ELSS vs 5-Year SBI FD vs SCSS: Which investment can create highest corpus on Rs 5 lakh; see calculation
Compare ELSS SIP, SBI FD, and SCSS to discover which offers the highest returns on a Rs 5 lakh investment. Understand their features, tax benefits, and maturity values for smart financial planning.
Choosing the right investment option is crucial for maximizing returns and achieving financial goals. This article compares three popular savings schemes: ELSS SIP, 5-Year SBI Fixed Deposit (FD), and Senior Citizen Savings Scheme (SCSS). Each option offers unique benefits, including tax savings, secure returans, and varying maturity values. With Rs 5 lakh invested, we evaluate their potential to create a significant corpus over five years. Find out which investment suits your needs and delivers the best returns for financial growth.
(Disclaimer: This is not investment advice. Do your own due diligence or consult an expert for financial planning)
ELSS
Equity-Linked Savings Scheme (ELSS) allocates at least 65% of its investments to equity and equity-linked securities, with some exposure to fixed-income securities.
Lock-in period
- Comes with a 3-year lock-in period.
Tax Benefits
- Only mutual fund type eligible for deductions under Section 80C of the Income Tax Act, 1961.
- Tax rebate: Up to Rs 1.5 lakh.
- Maximum tax savings: Up to Rs 46,800 annually.
Investment & Returns
- Invested amount: Rs 5,00,000
- Estimated returns: Rs 1,90,210
- Total value after 5 years: Rs 6,90,210
5-Year SBI Fixed Deposit (FD)
-
Fixed deposit schemes from SBI offer interest rates ranging from 3.50% to 7.25% p.a. (general public) and 4.00% to 7.75% p.a. (senior citizens).
- SBI Tax-Saving FD (5 years) interest rate: 6.50% p.a. (general public) and 7.50% p.a. (senior citizens).
Fixed deposit schemes from SBI offer interest rates ranging from 3.50% to 7.25% p.a. (general public) and 4.00% to 7.75% p.a. (senior citizens).
Option for NRIs
- Various FD options available for NRIs, including NRO, NRE, RFC, and FCNR deposits.
Investment & Returns
- Invested amount: Rs 5,00,000
- Estimated returns: Rs 1,90,210
- Total value after 5 years: Rs 6,90,210
Senior Citizen Savings Scheme (SCSS)
-
Government-backed savings scheme designed for individuals aged 60 and above.
- Offers safe, reliable, and income-generating opportunities.
- Minimum investment: Rs 1,000.
- Maximum investment: Rs 15 lakhs (individual or joint).
Government-backed savings scheme designed for individuals aged 60 and above.
Investment & Returns
- Invested amount: Rs 5,00,000
- Maturity amount: Rs 7,05,000
- Quarterly interest: Rs 10,250
- Total interest earned over 5 years: Rs 2,05,000
