SCSS vs 5 year senior citizen bank FD: Which offers higher interest rate?

For people who wish to keep their money secure, bank fixed deposits (FDs) and small savings plans are two low-risk investment options. Investors, particularly senior citizens, who are looking for somewhere to put their money as interest rates reach their pinnacle can consider these options.Small savings schemes are regularized by the government and interest rates are revised every quarter. Bank fixed deposits which offer 0.50-0.75% higher interest to senior citizens and Senior Citizens Savings Scheme (SCSS) offered by the government are very popular choices for senior citizens. Let us look at the bank fixed deposit interest rate offered to senior citizens and interest rate of SCSS offered on this quarter.Here is a comparison of the interest rates offered by SCSS and top banks including SBI, HDFC Bank, ICICI Bank, Axis, and Yes Bank for fixed-rate deposits with a 5-year term.

Senior Citizen Savings Scheme
For the quarter between July to September 2023, the government has kept the senior citizens savings scheme unchanged at 8.2%. Note that there will be only one deposit in the account in multiple of Rs 1000/- maximum not exceeding Rs 30 lakh.
An individual above 60 years of age, Investment under this scheme qualifies for the benefit of section 80C of Income Tax Act, 1961. SCSS account can be closed after 5 year from the date of opening by submitting a prescribed application form with a passbook at the concerned Post Office. Interest will be paid on a quarterly basis and applicable from the date of deposit to 31st March/30th June/30th September/31st December.

SBI senior citizen FD
State Bank of India offers an interest rate of 7.50% on fixed deposit tenure 5 years to 10 years. On Amrit Kalash deposit, senior Citizens are eligible for a rate of interest of 7.60%. The Scheme will be valid till 15-August-2023. HDFC Bank senior citizen FD
HDFC Bank offers interest rate up to 7.75% on fixed deposit tenure 5 Years 1 day to 10 Years on Senior Citizen Care FD. The bank also offers the highest interest rate of 7.75% on tenure of 4 Year 7 Months – 55 months.

ICICI Bank senior citizen FD
ICICI Bank offers interest rates up to 7.60% on fixed deposit tenure 5 Years 1 day to 10 Years on ICICI Bank Golden Years FD. The bank offers an interest rate of 7.50% on tenure 5 years 1 day to 10 years.

Axis Bank senior citizen FD rates
Axis Bank offers interest rate between 7.75% to 8.00% in tenures between 18 months to 5 years for senior citizens.

Yes Bank senior citizen FD rates
Yes Bank offers an interest rate between 7.75% for tenures between 60 months to less than 120 months for senior citizen customers.