SCSS vs bank FD
Both pay a fixed rate. One is for people over 60 and pays quarterly; the other is open to anyone and is insured up to ₹5 lakh.
| Senior Citizens' Savings Scheme | Bank FD | |
|---|---|---|
| Rate | 8.20% quarterly payout | Set by each bank, varies by tenure |
| Who | 60+, or 55+ for specified retirees | Any resident individual |
| Term | 5 years, extendable by 3 | 7 days to 10 years |
| Safety | Government of India | Bank, insured to ₹5 lakh by DICGC |
| Tax | Interest taxed; 80C on the deposit | Interest taxed; 80C only on 5-year tax-saver |
| Access | Premature closure with rules | Breakable with a rate penalty |
SCSS pays quarterly, which is what most retirees actually need, and at 8.20% it usually beats a comparable five-year FD. Its limits are the age test and the ₹30 lakh cap.
An FD is the flexible option: no age limit, any tenure, and ₹5 lakh of insurance if the bank fails. If you are under 60, it is the only one of the two you can open.
SCSS rate from the National Savings Institute, quarter beginning 2026-10-01. FD rates vary by bank and are linked, not published, on this site.