SCSS vs senior citizen FDs in SBI, HDFC Bank, ICICI Bank, YES Bank: Which offers higher interest?
Usually, senior citizens get a slightly higher interest rate on fixed deposits (FDs) than general citizens in banks. Similarly, the Central Government offers certain schemes specifically reserved for senior citizens. One such scheme is the Senior Citizens Savings Scheme (SCSS). Which scheme offers more interest rates and benefits to those who are above the age of 60 years. Let's find out.Here we have compared the interest rates offered by the Senior Citizens Savings Scheme and the bank fixed deposit rates for senior citizens for five years.
Senior Citizen Savings Scheme
For the October to December quarter, the Senior Citizen Savings Scheme offers an interest rate of 8.2% per annum. It has a tenure of five years. However, it can further be extended up to three years.Once invested, the rate of interest remains fixed for the entire tenure, just like fixed deposits. Interest will be paid quarterly, from the date of deposit.
Do note that there will be only one deposit in the account in multiple of Rs 1000 maximum not exceeding Rs 30 lakh. An individual over the age of 60 who invests in this scheme can claim a tax deduction under Section 80C of the Income-tax Act, 1961.
Also read: SBI vs HDFC Bank vs ICICI Bank: Check latest FD rates in October 2023
SBI senior citizen FD
As per the State Bank of India (SBI) website, it offers an interest rate of 7.5% (including SBI Wecare) to senior citizens on FDs maturing between five and 10 years. Earlier, the last date to invest in SBI Wecare was September 30, 2023. The bank has not updated if the scheme is revised or not.Senior citizens can earn the highest interest rate of 7.6% on their Amrit Kalash deposits maturing in 400 days. This special scheme is valid up to December 31, 2023.
HDFC Bank senior citizen FD
For senior citizens, HDFC Bank offers an interest rate of up to 7.75% (including Senior Citizen Care FD) on a fixed deposit tenure of five years and one day to 10 years. The last date to invest under this special senior citizen FD is November 7, 2023. The bank also offers the highest interest rate of 7.75% to senior citizens on FDs maturing in 55 months.ICICI Bank senior citizen FD
Under ICICI Bank Golden Years FD, ICICI Bank offers an interest rate of 7.50% on a fixed deposit maturing between five years and a day and 10 years. This scheme is limited to senior citizens and is available up to April 30, 2024.Senior citizens can get up to 7.65% interest rate on FDs maturing between 15 months and two years.
Latest ICICI Bank FD interest rates October 2023: Check details
Axis Bank senior citizen FD rates
For senior citizens, Axis Bank offers an interest rate of 7.75% on FDs maturing between five years and 10 years.
Yes Bank senior citizen FD rates
Yes Bank offers an interest rate of 7.75% to senior citizens on FDs maturing between 60 months and less than 120 months. The bank offers the highest interest rate of 8% on senior citizen FDs maturing in 60 months.
FD interest rate comparison
NameTenureInterest rateSCSS5 years8.20%SBI5 to 10 years7.50%HDFC Bank5 to 10 years7.75%ICICI Bank 5 to 10 years7.50%Axis Bank5 to 10 years7.75%Yes Bank5 Years8%Source: Bank website as on October 26, 2023
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This story originally appeared on: India Times - Author:Faqs of Insurances
