Which one is better Senior Citizen Savings Scheme or Bank FD, know where you will get more interest

SCSS vs Bank FD: The government-run scheme for elderly persons is Senior Citizen Savings (SCSS), which is giving 7.6 percent interest to the depositors. This interest rate is higher than the FD interest of many banks. This saving scheme offers many benefits for senior citizens, which also includes tax exemption. On the other hand, due to increase in RBI Repo Rate many times, the interest rate of Bank FD has also increased.

Many small sector banks are giving up to 9 percent interest on FDs to senior citizens, while many major banks are giving 7 to 8 percent interest to senior citizens on special FDs. This increase in the bank’s Fixed Deposit Interest Rate is due to the increase in the Reserve Bank’s repo rate by 2.25 percent since May. In such a situation, if you are in confusion that in which you should invest in Senior Citizen Savings Scheme (SCSS) or Bank FD, then you can invest in the scheme according to your convenience by comparing both of them.

Revision of interest of Senior Citizen Saving Scheme (SCSS) in September

During the month of September this year, the interest rate of some schemes of Small Savings Scheme was changed by the government, in which the Senior Citizen Savings Scheme was also included. In this scheme, the government changes the interest rate every quarter, but this interest rate was unchanged for the last few years. Earlier 7.4 percent interest was being given, but now it is getting 7.6 percent interest. Right now another quarter is going to end on December 31, 2022 under the small savings scheme. In such a situation, the government can change the interest rate on the basis of review.

bank fixed deposit interest rate

RBI has increased the repo rate by 225 basis points from May 2022 and people are getting higher interest rates up to 9 percent on bank fixed deposits, the government may think of increasing the interest rates of savings schemes. Is. Even if the government increases small savings schemes, the interest rate cannot be increased up to 9 percent. Some small savings schemes are offering 9 per cent interest, while leading banks are offering up to 8 per cent interest to senior citizens.