Senior Citizens Savings Scheme vs SBI, HDFC Bank, ICICI Bank, Axis Bank and PNB Fixed Deposits: Who Offers the Highest Interest Rates?
scss Vs Senior Citizen FD: Senior Citizen Savings Scheme (SCSS) offered by the postal service and fixed deposits (FD) in banks are commonly chosen investment options for older persons. This comparison outlines Rate of interest Offered by SCSS and Bank FD for senior citizens.
scss interest rate
As per ET, the SCSS interest rate for January-March 2024 is unchanged at 8.2%. This scheme has a tenure of 5 years (extendable up to 3 years) with quarterly fully taxable interest payments. The minimum deposit per individual in all SCSS accounts is Rs 1000, in multiples of Rs 1000, up to a maximum of Rs 30 lakh. Additionally, investments in the scheme are eligible for benefits under Section 80C Income tax Act, 1961. Now, let us look at the interest rates offered by major banks for senior citizen fixed deposits with a tenure of 5 years.
State Bank of India Senior Citizen FD
According to the SBI website, the bank offers interest rates between 4% to 7.50% including SBI V Care for tenures ranging from 7 days to 10 years. Specifically, the interest rate for a tenure of 5 years is 7.25%.
Canara Bank Senior Citizen FD
Canara Bank offers interest rates ranging from 3.50% to 7.75% for tenures of 7 days to 10 years. Specifically, the interest rate is 7.30% for a tenure of 5 years.
PNB Bank Senior Citizen FD
Punjab National Bank offers interest rates for senior citizens ranging from 4% to 7.75% for tenures of 7 days to 10 years. Rates for very senior citizens range from 4.30% to 8.05%. Notably, the bank offers an interest rate of 7% for senior citizens and 7.30% for ultra senior citizens on a tenure of 5 years.
scss interest rate
As per ET, the SCSS interest rate for January-March 2024 is unchanged at 8.2%. This scheme has a tenure of 5 years (extendable up to 3 years) with quarterly fully taxable interest payments. The minimum deposit per individual in all SCSS accounts is Rs 1000, in multiples of Rs 1000, up to a maximum of Rs 30 lakh. Additionally, investments in the scheme are eligible for benefits under Section 80C Income tax Act, 1961. Now, let us look at the interest rates offered by major banks for senior citizen fixed deposits with a tenure of 5 years.
State Bank of India Senior Citizen FD
According to the SBI website, the bank offers interest rates between 4% to 7.50% including SBI V Care for tenures ranging from 7 days to 10 years. Specifically, the interest rate for a tenure of 5 years is 7.25%.
Canara Bank Senior Citizen FD
Canara Bank offers interest rates ranging from 3.50% to 7.75% for tenures of 7 days to 10 years. Specifically, the interest rate is 7.30% for a tenure of 5 years.
PNB Bank Senior Citizen FD
Punjab National Bank offers interest rates for senior citizens ranging from 4% to 7.75% for tenures of 7 days to 10 years. Rates for very senior citizens range from 4.30% to 8.05%. Notably, the bank offers an interest rate of 7% for senior citizens and 7.30% for ultra senior citizens on a tenure of 5 years.
HDFC bank Senior Citizen FD
HDFC Bank offers interest rates for senior citizens ranging from 4% to 7.75%, including the HDFC Bank Senior Citizen Care FD. Specifically, the bank offers 7.50% interest rate for a tenure of 5 years.
ICICI Bank Senior Citizen FD
ICICI Bank offers interest rates ranging from 3.50% to 7.50%, including on the ICICI Golden Years FD. Specifically, the bank offers 7.50% interest rate for a tenure of 5 years.
axis Bank Senior Citizen FD
Axis Bank offers interest rates for senior citizens ranging from 3.50% to 7.75%. Specifically, the bank offers 7.75% interest rate for tenures ranging from 5 to 10 years.
Comparison between SCSS and FD for senior citizens in SBI, HDFC Bank, ICICI Bank, Axis Bank and PNB:
| Edge |
Rate of interest |
Tenure |
| State Bank of India | 7.25% | 3 years to less than 5 years |
| Canara Bank | 7.3 | 3 years to less than 5 years |
| pnb | 7% for senior citizens | up to 3 years and 5 years |
| 7.30% for very senior citizens | ||
| HDFC bank | 7.5 | 4 years 7 months 1 day <=5 years |
| ICICI Bank | 7.50% | 3 years 1 day to 5 years |
| axis Bank | 7.75% | 5-10 years |
