Income tax saving ideas: With 8.2% interest, Senior Citizen Savings Scheme (SCSS) is better bet to save tax than senior citizen FDs

economictimes.indiatimes.com:

Senior citizens often go for fixed deposits, considering the safety and fixed return. Elderly investors are in for a sweeter deal this year as they can get an attractive fixed return on the Senior Citizen Savings Scheme (SCSS). Is SCSS a better option for senior citizens than tax-saving fixed deposits? Probably yes. But before you invest, let's compare the features and benefits of SCSS and five-year tax-saver fixed deposits (FDs).

SCSS interest rate vs tax-saver fixed deposits interest rates

«How much return will I get?» is often the foremost question when you are planning to invest. To get some clarity, let's compare the interest rates of SCSS and tax-saving FDs. For the January-March quarter, Senior Citizen Savings Scheme offers an interest rate of 8.2% per annum.

If senior citizens go for a fixed deposit in any prominent public or private sector bank, they will get an interest rate of 6.5-8% per annum. YES Bank offers an interest rate of 8% on tax-saver FDs for senior citizens. This is the highest interest rate that a senior citizen can get on tax-saving FDs now. DCB Bank offers an interest rate of 7.9% on senior citizen tax-saving FDs. IndusInd Bank, HDFC Bank, Axis Bank offer an interest rate of 7.75% on tax-saving FDs for senior citizens.

Tax-saving FD interest rates for senior citizens as on March 15, 2024