Many senior citizens looking for a stable income source from their investments invest in the Senior Citizens’ Savings Scheme (SCSS) and bank fixed deposits (FDs). The SCSS comes with a five-year maturity period, senior citizen FD tenures range from 7 days to 10 years.
Both investment schemes offer interest on deposits. While the SCSS offers payout every quarter, an FD generally offers interest on maturity. However, an investor can opt for a quarterly FD payout depending on investment conditions. All public sector, private sector and small finance banks offer senior citizen FDs of different tenures. State Bank of India (SBI) also offers a 5-year senior citizen FD. In this write-up, we will compare the estimated quarterly payout senior citizens can get on investing Rs 7 lakh each in the SCSS and the 5-year SBI FD.
