Senior citizen 5-year fixed deposit (FD) rates of SBI, HDFC Bank, ICICI Bank, PNB vs SCSS: What should elderly prefer?
bank fixed deposit or SCSS. The maturity period for the SCSS scheme is five years. It can be extended for another 3 years.
At present SCSS is offering a guaranteed interest rate of 8.2 per cent. These rates are with effect from 1 January 2024. Once the investment is done the interest rate remains the same throughout the tenure.
Senior citizens can invest up to ₹30 lakh in this scheme. State Bank of India (SBI), the country's largest lender, offers an interest rate between 4% to 7.50% for tenure ranging from 7 days to 10 years. On a 5-year tenure, SBI offers 7.25% to senior citizens.
These rates were last revised on 27 December 2023. Punjab National Bank offers an interest rate between 4% to 7.75% for 7 days to 10 years for senior citizens. The bank offers 7% for senior citizens on deposits maturing in five years.
These rates were last revised on 8 January 2024. HDFC Bank offers an interest rate between 4% to 7.75% for senior citizens. On a 5-year tenure, HDFC Bank offers 7.50%.
These rates were last revised on 1 October 2023. ICICI Bank offers an interest rate between 3.50% to 7.65%. The bank offers 7.50% on 5-year tenure.
These rates were last revised on 16 October 2023. If we talk about bank FDs, senior citizens get an additional rate of interest that can go up to 0.50% more than for the general public. While SCSS gives 8.2%, SBI, and PNB give 7.25%, and 7% respectively.
HDFC, and ICICI Bank offer 7.5% to senior citizens on deposits maturing in five years. Investments in SCSS, and five-year bank FD qualify for tax deduction under Section 80C. Currently, the SCSS deposit limit is ₹30 lakh.
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