FD Update: Amidst falling interest rates on bank FDs, this scheme will prove to be a super hit for senior citizens..

For some time now, the situation hasn't been the same for those investing in bank FDs. In 2025, the RBI cut the repo rate four times, which made loans cheaper, but the interest earned on fixed deposits continuously decreased.

This has had the biggest impact on senior citizens, who consider FDs the most reliable option for safe investment. Although banks offer senior citizens up to 0.50% more interest than regular investors, their earnings have still been affected due to the declining rates. In this environment, the Post Office's Senior Citizens Savings Scheme (SCSS) has emerged as a superhit option.

What is the Senior Citizens Savings Scheme (SCSS)?

SCSS is a government savings scheme run through post offices and some selected banks. It is designed keeping senior citizens in mind. This scheme currently offers an annual interest rate of 8.2%, which is significantly higher than current FD rates. Most importantly, it is government-guaranteed, meaning the money is completely safe.

Major Advantages of Investing in SCSS
1. High and Guaranteed Returns
The 8.2% interest offered in SCSS is directly better than FDs. It is not affected by market fluctuations.

2. Assurance of Regular Income
In this scheme, interest is credited to the account every quarter. This provides senior citizens with a regular income.

3. Government Security
This is a government-backed scheme, so there is no risk of default or loss of money.

4. Tax Relief
Investing in SCSS provides tax benefits under Section 80C of the Income Tax Act, although the interest earned is taxable.

Who can invest in SCSS?
People aged 60 years or older.
People aged 55 to 60 years who have taken voluntary retirement.
A joint account can also be opened, but the first account holder must be a senior citizen.

Investment Limit and Tenure
The minimum investment in SCSS starts from ₹1,000. The maximum investment limit is ₹30 lakh. This scheme has a duration of 5 years, which can be extended for another 3 years.

Disclaimer: This content has been sourced and edited from Zee Business. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.