Senior Citizen Savings Scheme (SCSS) is a government-sponsored savings scheme for senior citizens, which was launched in 2004. The primary objective of the scheme is to enable senior citizens to ensure a regular flow of income.
The scheme offers guaranteed interest payment, which can be received on a quarterly basis. As this scheme is solely a government-run scheme, so the interest rate and other conditions have been set keeping in mind the financial needs of retirees.
For those looking to avail the benefits of this scheme, here are the eligibility criteria:
As a government-run scheme, the Senior Citizen Savings Scheme (SCSS) offers safety and guarantee of your investment. Here’s a look at some other benefits of investing in this scheme:
You can calculate the SCSS interest rate easily, by computing the compound interest on deposit amount as per the SCSS interest rate for that quarter. The payment is released annually to the savings account of the account holder.
While the Senior Citizen Savings Scheme can be a great option for those above 60 years of age, there are a few limitations of this scheme as well. Here’s a look at some of its limitations below:
For senior citizens looking for high, stable returns on their investments, another good investment option is Fixed Deposit. Unlike SCSS, investing in a Fixed Deposit can offer higher flexibility in terms of investment amount, tenor and guidelines for premature withdrawal. Here’s a look at factors that make investing in a Fixed Deposit a better option than SCSS:
Senior Citizen Fixed Deposit from Bajaj Finance offer an attractive interest rate. The interest rate offered is as high as 7.25%, and there is an additional benefit of 0.10% on renewals. No other fixed income investment (including SCSS) offers such a high interest rate.
You can choose the tenor as per your needs. Bajaj Finance offers flexible tenor in the range of 12 months to 60 months. Senior citizens can protect their investment against inflation by opting for shorter tenors. Also, you can renew your FD upon maturity of your deposit. There is no limit on the number of renewals.
Senior citizens can avail periodic interest payouts with Bajaj Finance FD to meet their regular monthly expenses. You can choose monthly, quarterly, or annual payouts.
Senior citizens can calculate the maturity amount of their FD investments with online FD calculator. This leaves no room for any confusion or ambiguity.
Financiers like Bajaj Finance offers the ease of investing in a Fixed Deposit online from the comfort of your home. For senior citizens looking to invest offline, Bajaj Finance provides the facility of doorstep document pick-up at no additional cost.
| Features | Bajaj Finance Fixed Deposit | SCSS |
|---|---|---|
| Interest rate | 7.25% | 7.4% (current rate for the 2nd quarter of FY 2020-21) |
| Tenor | Flexible ranging from 12 months to 60 months. | Fixed at 5 years with a one-time extension up to 3 years |
| Eligibility | It is also available for Hindu Undivided family | It is not available for HUF |
| Interest payout frequency | Flexible | Annually |
| Loan facility | Loan against FD available | Loan facility not available |
