This post office scheme or bank FD, which one offers higher returns to senior citizens


Post office schemes Vs Bank FD: After retirement, every person is worried that he should not have shortage of money. In such a situation, you should start preparing for retirement along with the job.

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Where should you invest for retirement fund to get good returns? So this becomes a very difficult question. By the way, banks and government have many types of saving options for senior citizens. But where will you get more profit, it is a matter to think about. Let us know here what is better for you, Bank FD or Post Office Senior Citizen Savings Scheme.

The Senior Citizen Savings Scheme of the Post Office is a great investment option. In this, senior citizens get a strong interest rate. Citizens were getting good returns in this scheme even when banks were offering only up to 6% interest. But since May 2022, the Reserve Bank has continuously increased its repo rate. Only after this many banks are offering up to 8% interest to their senior citizen customers.

SCSS or Bank FD on which is getting more interest

The government had announced in December 2022 that it was increasing the interest rates of the Senior Citizen Savings Scheme to 8%. These rates are for the January-March quarter. At the same time, Axis Bank is offering maximum 8.01% interest rate on FDs of 2 years to 30 months to its senior citizens on FDs of less than Rs 2 crore.

At the same time, interest rate ranging from 3.50% to 7.75% is being given on FDs ranging from 7 days to 10 years. At the same time, State Bank is giving interest rate ranging from 3.50% to 7.00% to senior citizens on FDs of less than Rs 2 crore. HDFC Bank is offering interest ranging from 3.50% to 7.60% to its senior citizens.

Tenure of SCSS vs Bank FD

Talking about the duration of Senior Citizen Saving Scheme, senior citizens can invest money in it for a total of 5 years. In this scheme, you can extend the investment of 5 years for further 3 years. On the other hand, talking about bank FD, you can invest money in it from 7 days to 10 years. On investing in the SCSS scheme, senior citizens get a rebate of Rs 1.5 lakh under Section 80C of Income Tax. Whereas in FD, this exemption is available only on deposits of more than 5 years.

How much can be invested in SCSS vs Bank FD

Presenting the Budget 2023, Finance Minister Nirmala Sitharaman said for the SCSS scheme that its deposit limit has been increased from Rs 15 lakh to Rs 30 lakh. At the same time, the minimum investment limit in the scheme is only Rs 1,000.

At the same time, customers can get bulk FDs of Rs 2 crore or more in the bank according to their needs. In such a situation, if you want to get a strong return in a short time, then the Senior Citizen Saving Scheme of the Post Office is a great option.

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