SCSS vs FD: Which guaranteed return scheme will give you more quarterly income on Rs 20,00,000 investment?
SCSS vs FD: Both SCSS and FD schemes provide guaranteed returns. They are safe and provide tax-saving benefits.
SCSS or senior citizen savings scheme (SCSS) is a government-backed savings scheme in which you can invest a lump sum amount of up to Rs 30 lakh if you are 60 years of age. This is a senior citizen special scheme. While FD (fixed deposit) is available for all age groups, we will discuss SBI's (State Bank of India's) special FD scheme for senior citizens in which they get better interest rates than others.
Guaranteed return scheme
Both SCSS and FD schemes provide guaranteed returns. They are safe and provide tax-saving benefits.
Eligibility
For both schemes, a person should be at least 60 years old.
SCSS tenure
The senior citizen savings scheme's tenure is five years.
SCSS: Minimum and maximum investment
A senior citizen can invest a minimum of Rs 1,000 and a maximum of Rs 3,00,000 in this scheme.
SCSS tax benefits
Tax benefits are available under Section 80C up to Rs 1.5 lakh.
Benefits of SCSS
The account is transferable across India. It can be opened at any authorised bank or any post office in the country.
SCSS interest rate
SCSS current interest rate is 8.2 per cent per annum. This is applicable from April 1, 2024 to March 31, 2025.
SBI FD
The SBI FD tenure ranges from seven days to 10 years.
SBI FD minimum and maximum investment
A senior citizen can invest a minimum of Rs 1,000 and there is no maximum limit.
SBI FD interest rate on 5-year investment for senior citizens
SBI provides 7.50 per cent interest rate per annum to senior citizens.
What will be your return on Rs 20,00,000 investment in SBI FD?
If you invest Rs 20,00,000 in SBI's Amrit Vrishti scheme, then you will get Rs 27,50,000 on maturity.
SCSS: What will be your return on Rs 20,00,000 investment?
The maturity amount in SCSS will be Rs 42,30,000 in five years on Rs 20 lakh investment.
SBI: Quarterly income on Rs 20 lakh investment
You will get Rs 37,500 per quarter under this scheme.
SCSS: Quarterly income on Rs 20 lakh investment
You will get Rs 41,000 per quarter under this scheme.