Senior Citizens Savings Scheme: If we talk about investment time frame, there is no difference between SCSS and FD. Both have a lock in period of 5 years. That means tax savings will be given only after investing for 5 years.
SCSS: If you are planning to save income tax in the financial year 2023-24, you will have to invest by March 31, 2024. If you are a senior citizen and prefer fixed income investments, what would be better for you? Considering the risk and assured returns, senior citizens often opt for fixed deposits. However, experts say that for senior citizens, a better option than FD is the Senior Citizens Savings Scheme (SCSS). Let us know how?
How much interest is being received on SCSS
If we compare the interest rates of SCSS and tax-saving FD, let us tell you that for the January-March quarter, the Senior Citizens Savings Scheme is offering an interest rate of 8.2% per annum. At the same time, most of the banks are giving interest at the rate of 6.5-8% per year on tax saving FD to senior citizens. Yes Bank offers 8% interest rate on tax-saver FD for senior citizens. This is the highest interest rate a senior citizen can ever get on a tax-saving FD. However, in comparison to this, SCSS is easily getting higher interest.
How much can you invest?
The minimum investment limit in SCSS is Rs 1,000 and maximum Rs 30 lakh. The amount deposited in SCSS should be in multiples of Rs 1,000. Keep in mind that you can get tax deduction up to Rs 1.5 lakh only, even if you invest Rs 30 lakh in SCSS. If we talk about investment time frame, there is no difference between SCSS and FD. Both have a lock in period of 5 years. That means tax savings will be given only after investing for 5 years.
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